Steel Dynamics (STLD) is the third largest producer of carbon steel products in the United States. With the shares hitting a 52-week high on Wednesday, a Real Money subscriber asked about its technical prospects.
Let's check out the charts and indicators.
In the daily bar chart of STLD, below, we can see that the shares broke support in January but managed to come roaring back to the upside in the past five weeks. STLD has broken out over its August high. Prices are trading above the rising 50-day moving average line and the bullish 200-day moving average.
Trading volume and the On-Balance-Volume (OBV) line have risen in the past five weeks and confirms the price gains. The OBV line is close to making its own new high. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.