What is Happening to the Share Price of Bluescope Steel Ltd?

Bluescope steel

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:

Bluescope Steel Friday

Source: STEX

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.

Terence Duffy,
Research Analyst, Cycles, Trends and Forecasts

Join Markets and Money on Google+

Terence Duffy

Terence Duffy

Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts.

As Terence will show you, the charts often forecast, well in advance, the good or bad news to come — which he details in Cycles, Trends and Forecasts.

Leave a Reply

1 Comment on "What is Happening to the Share Price of Bluescope Steel Ltd?"

newest oldest most voted
Notify of
John Hutchinson

The thing is Bluescope Steel was a millstone around BHP’s neck even during a resources boom. It was scalpeled off and throw away like a malignant tumor. Why anyone would want to then invest in it is anyone’s guess?

Letters will be edited for clarity, punctuation, spelling and length. Abusive or off-topic comments will not be posted. We will not post all comments.
If you would prefer to email the editor, you can do so by sending an email to letters@marketsandmoney.com.au