Steel Dynamics - Next short candidate! Falling steel prices weigh on

Company description

Steel Dynamics is a leader in the steel industry specializing in the production of hot rolled steel, cold rolled steel and coated steel. The company was founded in 1993 and is headquartered in Fort Wayne, Indiana, USA.

Steel prices USA

If you look at the cost of steel prices in the recent past, you can see that prices are falling significantly, most recently since the beginning of 2024. Since this is how Steel Dynamics mainly makes its money, it is only a matter of time before the company makes less profit - this should also be reflected in the share prices.

Chart technical outlook

The stock company triggered an alarm today and is now one of the potential short positions. If Steel Dynamics' shares fall below the USD 128 price range for a sustained period, there is a downside potential of almost 15%. This would definitely be worthwhile on the basis of a short position. The current CRV for a potential short position is currently just under 2:1. The USD 136 mark serves as a suitable stop loss zone for this.

In the first move, I can imagine possible price targets in the range of USD 110. If steel prices continue to fall, I think it is likely that Steel Dynamics could mark another low of under USD 89.

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