What does Bluescope Steel Ltd do?
Bluescope Steel Ltd [ASX:BSL] is a flat steel producer and supplier of steel products to the global building and construction markets. It operates in four main geographical regions being Australia, New Zealand, Asia and North America.
BlueScope Steel chief executive Paul O’Malley said the company is ‘very well positioned to capture future growth.’
That’s interesting, but what is the chart telling you?
What is the chart telling you?
I personally find it helpful to bring up a chart. Here’s the daily chart of BSL:
The stock was down in today’s trading breaking the previous lows. This stock has been in a steady downtrend since February this year. While the company is forecasting its earnings for the half year to June 2015 will increase by 20% — the chart does not give us the same optimism.
What now for BSL shares?
If it’s breaking the previous lows it might suggest there is further bad news for this company. Let’s wait and see.
From late February onwards someone has been buying. Essentially they are trying to buy a bargain. The problem with trying to buy stocks cheaply is they can become even cheaper.
Eradicate the word ‘hope’ from your vocabulary. Be clear on whether you are trading the daily, the weekly or the monthly and if the previous low is taken out, apply your risk management QUICKLY.
You have to be a bit proactive. With a little charting knowledge you will know how to apply your risk management to good effect. Go here to find out more.
Research Analyst, Cycles, Trends and Forecasts