Shares of BlueScope Steel rose to an eight-year high of $16.80 just after the ASX open today.
However, after Mr Trump’s announcement earlier to impose sweeping tariffs on imported Steel and Aluminium, BSL shares have slipped back to $16.35.
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In its current form, the legislation would put a 25% tariff on the cost of imported steel to the US, regardless of the country of origin.
BSL is the sole exporter of Aussie steel to the US market which is worth about US$130 million per year.
Our ALGO engine triggered a buy signal for BSL on February 6th at $14.15.
At this point, we suggest that investors either exit their long positions outright, or look to sell the $17.00 calls into April for 42 cents to enhance portfolio returns.
BlueScope Steel
