Steel sector theme play may unfold soon

On August 7, I have posted a story from the Edge about the bright outlook for the steel sector. I have looked through the charts of all the big steel players and the following stocks look appealing to me.

1. Southern Steel ("SSteel").

SSteel is still in an uptrend, which began in January this year. The uptrend line support is at RM1.00/1.02. The stock's immediate resistance is at RM1.06. A break above this resistance could signal continuation of its uptrend.

















Chart 1: SSteel's daily chart as at August 10

2. Lion Industries ("Lion Ind")

Lion Ind is also in an uptrend, which has commenced in December last year. The uptrend line support is at RM0.83. A break above RM0.90 could signal the continuation of its uptrend.

















Chart 2: Lion Ind's daily chart as at August 10

3. Malaysia Steel Works ("Masteel")

Like SSteel & Lion Ind, Masteel is still in an uptrend which began in January 2006. The stock's immediate resistance is at RM0.80. A break above that level could signal the continuation of its uptrend.

















Chart 3: Masteel's daily chart as at August 10

4. Ornasteel ("Onastel")

Unlike SSteel, Lion Ind & Masteel, Onastel has broken its uptrend in May this year. It is range-bounced between RM0.80 & RM0.88. Onastel has broken above RM0.88 on August 9. If it can hold above RM0.88, the stock is likely to move higher from here.

















Chart 4: Onastel's daily chart as at August 10

The financial performance of the above stocks are tabulated below: