Tag: ASX:BSL

Our ALGO engine triggered a buy signal on Bluescope Steel into yesterday’s ASX close at $14.56.

The “higher low” price pattern is referenced to the $13.50 intra-day low posted on February 6th.

BSL reached an all-time high at $16.80 on March 2nd before falling over 14% to $14.40 on the threat of steel import tariffs from the USA.

We added BSL to our ASX Top 100 model portfolio on February 6th at $14.15.

BSL is currently trading at 12X 2018 earnings and we see the next upside resistance area near $15.85.

Bluescope Steel

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.

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

Our Algo Engine triggered a buy signal in BSL on the 19th April at $11.00, the stock is now trading $12.38. Stop-loss orders should be applied on a break back below $11.00.