Upside For BlueScope

This story features BLUESCOPE STEEL LIMITED. For more info SHARE ANALYSIS: BSL

By Michael Gable 

Last week was a bearish one for US and Australian markets and after seeing the VIX (a volatility index) spike dramatically last Wednesday, it has settled once again down towards recent lows. The next few days again become a battle between the bulls and bears to determine market direction while markets flirt between key support and resistance levels. But the last few weeks have shown that neither have been able to gain the upper hand for too long. It just creates a tough environment for market commentators.

This week we look at BlueScope Steel ((BSL)).
 

We have successfully traded BSL in the past on a breakout and it is once again showing signs of breaking higher. After peaking in March this year, BSL then eased back in what looks like a flag formation. The stock is now breaking above that flag and we should therefore expect BSL to rally to a new high above $13. Traders should place their stops just under $11.50.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services. 

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2

Disclaimer

Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
 

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