AKS – AKSteel Holding

Last updated April 11, 2019

I first updated on this stock early February stating “it has the potential for having put in a long-term bottom. Although there’s certainly a lot more price action needed to confirm this, things start to shape up nicely. What do we want to see? Step 1) price back above its 200d SMA (now at 4.05 and dropping); Step 2) price back above the red descending trendline. Step 3) The advance needs to be 5 waves and the subsequent decline 3 waves. When those things happen we can be very confident a new Cycle-3 wave is underway. Right now AKS is rallying since the December lows (which stock isn’t 😉 ) and back above its 50d SMA. This is encouraging, but I want to see more before jumping in.” Well price did rally back above its 50d SMA but that was it and the only SMA it retook temporarily, so that’s only half a point. However, and albeit not ideal, there could be five waves up off the December low and three waves down. That’s also half a point. BUT, price will have to stall at around $235-$2.25 or else we’ll see a marginal lower low (high $1s) before a more meaningful low is being put in place. All in all a glass-half-full chart.

Daily chart

The monthly chart continues to look constructive with positive divergences, but price has yet to respond and at least break above the green down trend line to suggest a new uptrend has started. Hence, maybe a few more months are needed to tell us a new multi-year trend has started: patience my friends!

Monthly chart