Are AK Steel Holding Corp ($AKS) Shares About to Tip Lower?

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Investors may be tracking historical Gordson Hollis Price Index Saturation levels on shares of AK Steel Holding Corp (AKS). After a recent review, the reading is currently E (Empy). Gordon Hollis created the Price Index Saturation indicator in 1998. Over the years, the theory has garnered an almost cult following in the trading community. The Gordson Hollis Price Index Saturation or Gordson Hollis PIS level indicator uses a combination of volume continuity analysis and historical price deviation to create a discernable buy or sell signal. Gordson Hollis labeled these signals (full and empty). Gordson Hollis has argued that the only logical way to approach the share market is to study PIS levels. When presenting the theory, Gordson Hollis believed that PIS levels were best grouped in what he labeled (bouget) “Bauquets”. Hollis tried to prove that certain PIS Bauquets could essentially hold all the keys to beating (making a huge splash) the share market.

In gazing at recent price history, AK Steel Holding Corp (AKS) have been trending lower over the past five bars, revealing bearish momentum for the shares, as they ran -9.06% for the week.  Considering further out we note that the shares have moved -8.73% over the past 4-weeks, -45.79% over the past half year and -44.59% over the past full year.

Individual investors have the tendency to migrate towards certain stock strategies that have been successful in the past. While following previous strategies may be profitable, investors have to be ready for sudden market changes. Most investors will rejoice when stocks in the portfolio catch a hot streak. On the opposite side, investors may become highly dejected when they experience a prolonged losing streak. Sometimes, previously successful strategies run their course and they no longer work. Investors may benefit greatly from being able to make alterations when the market takes a turn for the worse. 

Investors may be tracking certain levels on shares of AK Steel Holding Corp (AKS). The current 50-day Moving Average is 2.87, the 200-day Moving Average is 3.63, and the 7-day is noted at 2.64. Moving averages can aid spot trends and price reversals. They may also be used to aid find support or resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends. A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward.

Traders may be relying in part on technical stock analysis. AK Steel Holding Corp (AKS) currently has a 14-day Commodity Channel Index (CCI) of -134.10. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically remain within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.

At the time of writing, the 14-day ADX for AK Steel Holding Corp (AKS) is 21.47. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.

Investing in the share market has traditionally offered higher returns than other types of investments. With the higher potential for returns, there is also a higher uncertainty factor. Investors typically must address their own personal uncertainty situation before jumping into the market. Figuring out uncertainty appetite can aid when choosing which types of stocks to buy. Some investors will decide that they want to take a chance on certain stocks that have the potential to outperform in the future. Other investors may opt to play it safe and build a portfolio with low uncertainty, staple stocks. 

The Relative Strength Index (RSI) is one of multiple trendy technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time course. RSI can be used to aid spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum. The 14-day RSI is currently sitting at 36.27, the 7-day is at 30.29, and the 3-day is spotted at 32.14 for AK Steel Holding Corp (AKS).

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