Commercial Metals Company manufactures, recycles, and markets steel
and metal products, and related materials and services in the United
States and internationally. The Americas Recycling segment processes
scrap metals for use as a raw material by manufacturers of new metal
products. The Americas Mills segment operates 5 steel mills producing
reinforcing bars, angles, flats, rounds, small beams, fence-post
sections, and other shapes. The Americas Fabrication segment operates
fence post manufacturing plants, construction-related product
facilities, and plants that bend, weld, cut, and fabricate steel. The
International Mill segment engages in mill, recycling, and fabrication
operations through the operation of two rolling minimills that produce
reinforcing bar (rebar) and merchant products. The International
Marketing and Distribution segment processes, sells, and distributes
steel products, ferrous and nonferrous metals, and other industrial
products.
Take a look at the 1-year chart of Commercial Metals (NYSE: CMC) below with my added notations:
Starting in September, CMC declined into January, and from there the
stock started a 5-month rally. During the decline, and subsequent rally,
CMC created a very clear level of resistance at $17 (green). A break
above that $17 level should mean higher prices for the stock, and on
Friday CMC broke that level. And for confirmation, the stock broke out
on a major increase in volume.
The Tale of the Tape: CMC broke through its key
level of resistance at $17. A long trade could be entered on a pull back
down to that level. However, a break back below $17 could negate the
forecast for a higher move and would be an opportunity to get short the
stock.
Please share this article
No comments:
Post a Comment