Member @teeps01 inquired about AKS (AK Steel) within the trading room. AKS, along with the other steel stocks are bouncing today, largely if not exclusively due to the fact that SLX (Steel ETF) is bouncing after the first tag of the primary uptrend line in months. The first tag of support in while is usually followed by a reaction. Hard to say how far this bounce goes but with the divergent high put in back in early Jan plus the fact that any new high in the coming weeks will almost certainly be another divergent high, I highly favor a breakdown & correction in the steel sector over the next 6 or so months.
SLX daily Feb 9th
After a nearly perfect reversal off the support level in which T2 was placed slightly above & reaching that final official target for a 20% profit, AKS has since experienced the typical reaction (i.e.- pause and/or bounce). Yellow lines mark the likely end points for any counter-trend bounce with a continued move down towards the potential T3 target in the coming months.
AKS 60-min Feb 9th