The steelmaker AKS has moved into overbought territory as it bounces up against resistance at around the $23.50-$24.50 level. This level was touched in January, September 2009, and was a break-out point in April 2007.
So it is a moderately significant level for AKS.
AKS is trading at $23.56.
The stock had a huge downtrend from July 2008, and has been rolling along sideway at the bottom of the mountain since October 2008, and at a slightly higher level, since June 2008.
This is not a stock that lends itself to directional plays.
The macd is strongly in bull territory for the sixth trading day.
I own an iron condor composed of AKS options, expiring in March. I built it so that the postion would show a maximum profit at expiration if the stock is trading between $20 and $25, close to the current support and resistance levels.
AKS is middlin' when it comes to the financials and analysts, so there's not a lot of motivation either way for the shares. However, if the global economy is recovering seriously, then the steel business will see increased profits.
Topics:
AK Steel Holding.
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