I was looking at some steel names this afternoon. We have covered names like Nucor (NUE) and some others. I typed in the symbol STLD for Steel Dynamics Inc. and I liked the setup. Let's check.
In this daily bar chart of STLD, below, we can see that prices have been trading sideways since May. Trading volume has remained active and has not meaningfully decreased. The On-Balance-Volume (OBV) line has been steady to a touch higher over the same time frame indicating or suggesting that buyers of STLD have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero-line and appears to be turning higher.
In this weekly Japanese candlestick chart of STLD, below, we can see that prices are in a longer-term uptrend above the rising 40-week moving average line. The weekly OBV line has been steady for several months. The MACD oscillator is pointed down but has been narrowing towards an upside break, I believe.
In this daily Point and Figure chart of STLD, below, we can see an upside price target in the $80 area.
In this weekly Point and Figure chart of STLD, below, we see a price objective being projected in the $91 area.
Bottom line strategy: We looked at STLD way back on June 22, 2020 and we liked the setup. Now we also like the setup on STLD and would use available price weakness to go long. Risk to $58 for now. $80 is our first price target and $91 is our longer-term objective.
