Shares of AK Steel Holding Corporation (NYSE:AKS) jumped 35 cents, or 5.56% yesterday, closing just slightly below its declining 200-day exponential moving average (key resistance point). The rally was accompanied by high volumes, which is a very good sign for a continuation of the trend. If that level is broken next week on volume, the stock price short-term could accelerate towards the 7.54-7.70 zone, which represents the next resistance area on daily charts.
Daily technical indicators are looking bullish, and showing upward momentum. The MACD is above its signal line in positive zone, while RSI has just crossed above its 50% level to enter in the bullish zone. All these signs indicate that bulls are gradually regaining control of the daily chart.
Confidence Meter, now at 63%, has gone up 22.2% in the last few days. This shows an increasingly bullish trend for AKS among the Wall Street Analyst Community, as they have grown more confident of the stock.
This is a guest post by António Costa, acclaimed trader and the popular author of AC Investor Blog. All views and analysis belong to the author.