Steel Stocks Trade Near Major YTD Percentage Returns

A number of major steel stocks could be in for a round of profit taking

Senior Vice President of Research
Nov 30, 2016 at 8:05 AM
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Steel stocks have soared up the charts in 2016, receiving an extra boost earlier this month from Donald Trump's surprise election win. However, the steel and iron sector has reached overbought territory, and a number of steel stocks were hit hard on Tuesday by bearish analyst attention.

Specifically, Macquarie downgraded AK Steel Holding Corporation (NYSE:AKS) and Steel Dynamics, Inc. (NASDAQ:STLD) to "neutral," while cutting its outlook on Nucor Corporation (NYSE:NUE) to "underperform." Meanwhile, United States Steel Corporation (NYSE:X) was hit with a downgrade to "hold" from "buy" at Argus.

What's more, all four of these steel stocks are trading near key round year-to-date percentage return numbers, leaving them vulnerable to short-term profit taking. For AKS, the shares are trading near their 300% year-to-date level.

Daily Chart of AKS Nov 29

Meanwhile, STLD is currently sitting on a 97% year-to-date advance, after being rejected by its 100% year-to-date level a few days back.

Daily Chart of STLD Nov 29

Turning to NUE, the stock continues to hug its 50% year-to-date marker, which acted as resistance earlier this month.

Daily Chart of NUE Nov 29

Lastly, X was just pushed back below its 300% year-to-date level yesterday.

Daily Chart of X Nov 29

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