Watch For Steel Dynamics (STLD) To Possibly Break Major Resistance
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Steel Dynamics, Inc. engages in the manufacture of steel products and metal recycling. It operates through the following segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations.
Take a look at the 1-year chart of Steel Dynamics (STLD) below with the added notations:
Chart of STLD provided by TradingView
Twice over the past six months, STLD has stalled at its $100 resistance (red) level. That level is also the stock’s 52-week high barrier. A break above that $100 mark most likely means another leg higher for STLD.
The Tale of the Tape: STLD has a 52-week resistance at $100. The possible long position on the stock would be on a breakout above that level with a stop placed under it.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Good luck!
Christian Tharp, CMT
