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Reliance Steel & Aluminum Co (NYSE: RS) | The Mesh Report

Reliance Steel & Aluminum Co (NYSE: RS)

Christian Tharp, CMT September 25, 2019 Comments Off on Reliance Steel & Aluminum Co (NYSE: RS)

Reliance Steel & Aluminum Co. operates as a metals service center company. The company provides alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, and specialty steel products and related processing services to general manufacturing, non-residential construction, transportation, aerospace and defense, energy, electronics and semiconductor fabrication, auto, and heavy industries.

Take a look at the 1-year chart of Reliance (NYSE: RS) with the added notations:

RS has a formed an important level of support at $95 (green), a mark that was also resistance back in July. The stock looks like it may be making its way back down to there again, and traders could be able to expect some sort of a bounce, if it does. However, if the $95 support were to break, lower prices will likely follow.

The Tale of the Tape: RS has key support at $95. A trader could enter a long position at or around $95 with a stop placed under the level. If the stock were to break below the support, a short position could be entered instead.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!
Christian Tharp, CMT



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