STLD still stuck within tight trading range
Steel Dynamics Inc. (STLD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, STLD finished the month -1.77% lower at 26.09 after gaining $0.35 (1.36%) today on low volume, slightly underperforming the S&P 500 (1.54%). Closing above Monday's high at 26.02, the share confirmed its breakout through the prior session high after trading up to $0.34 above it intraday.
Daily Candlestick Chart (STLD as at Jun 30, 2020):
Tuesday's trading range has been $0.82 (3.19%), that's below the last trading month's daily average range of $1.07. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for STLD. Prices continued to consolidate within a tight trading range between 25.35 and 26.95 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 23rd, STLD lost -5.03% on the following trading day.
After having been unable to move lower than 25.48 in the previous session, Steel Dynamics found buyers again around the same price level today at 25.54.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to June's low at 25.32, downside momentum could speed up should the market mark new lows for the month.