Technical outlook – Technical analysis may appear complicated on the surface, but it boils down to an analysis of supply and demand in the market to determine where the price trend is headed.
In this instance, BlueScope Steel Limited (BSL) outlook appears to be strengthening to a potential bullish breakout as demand is expected to increase given to the pattern of the MACD, RSI and ASX patterns.
Traders or investors need to be able to immediately assess whether or not a trend exists in a market.
Two of the best and easiest ways that are with the Average Directional Index (ADX) and the Moving Average Convergence Divergence (MACD).
The Average Directional Index (ADX) is a technical analysis indicator used by some traders to determine the strength of a trend.
The (ADX) is a unique indicator that shows the characteristics of a particular trend.
The ADX tells us when there is a trend and when there is no trend, so we know when to use a “trend” following strategy and when to use a “range” trading strategy.
Whereas, the Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of prices.
Combining these signals, we can often determine when the next trade opportunity may arise.
After assessing both patterns, the signals for BlueScope Steel Limited (BSL) share price may soon transpire into a broader trend pattern since rebounding from the late 2016 lows of $8.00-20.
Therefore, as we complete our analysis, we expect traders/investors will likely opt-in at current levels and generate enough demand/momentum for this share to target the region of $11.50-80. Reassess from there.
Company Overview – BlueScope Steel Limited (BSL) is a flat steel producer and supplier of steel products and solutions focused on the global building and construction markets.
It operates in Australia, North America, China, Indonesia, India, Vietnam, Malaysia, Thailand. Former Names: BHP Steel Limited (17/11/2003).