“BSL is an Australian steel producer with operations in Australia, New Zealand, Asia, and North America,” Michael explained.
“Their recent half yearly result appeared soft at first glance, but with the shares coming off a low level, we still expect a recovery from here.
“After breaking under support in mid-January, BSL then rebounded back to test the underneath of this old support level.
“It spent most of February consolidating sideways underneath this line, which, to our minds, was a possible precursor to an upside break.
“We finally got that break this week on strong volume.
“We expect at a minimum for the shares to go on and retest resistance near $22.
“A break over $22 should set it up to make a run towards $26 again,” Michael said.
BlueScope Steel Limited (BSL)
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