Steel Dynamics $STLD Proactive Strategies

March 22, 2023, 01:30 amET, BY Mitchell H.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

Longer Term Trading Plans for STLD

• Buy STLD slightly over 105.80 target 121.66 stop loss @ 105.49 Details

The technical summary data tells us to buy STLD near 105.80 with an upside target of 121.66. This data also tells us to set a stop loss @ 105.49 to protect against excessive loss in case the stock begins to move against the trade. 105.80 is the first level of support below 111.05 , and by rule, any test of support is a buy signal. In this case, support 105.80 is being tested, a buy signal would exist.

• Short STLD slightly under 121.66, target 105.80, stop loss @ 122.01 Details

The technical summary data is suggesting a short of STLD as it gets near 121.66 with a downside target of 105.80. We should have a stop loss in place at 122.01though. 121.66 is the first level of resistance above 111.05, and by rule, any test of resistance is a short signal. In this case, if resistance 121.66 is being tested, a short signal would exist.

Swing Trading Plans for STLD

• Buy STLD slightly over 121.66, target n/a, Stop Loss @ 121.31 Details

If 121.66 begins to break higher, the technical summary data tells us to buy STLD just slightly over 121.66, with an upside target of n/a. The data also tells us to set a stop loss @ 121.31 in case the stock turns against the trade. 121.66 is the first level of resistance above 111.05, and by rule, any break above resistance is a buy signal. In this case, 121.66, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short STLD slightly near 121.66, target 106.39, Stop Loss @ 122.01. Details

The technical summary data is suggesting a short of STLD if it tests 121.66 with a downside target of 106.39. We should have a stop loss in place at 122.01 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 121.66, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for STLD

• Buy STLD slightly over 112.90, target 121.66, Stop Loss @ 112.64 Details

If 112.90 begins to break higher, the technical summary data tells us to buy STLD just slightly over 112.90, with an upside target of 121.66. The data also tells us to set a stop loss @ 112.64 in case the stock turns against the trade. 112.90 is the first level of resistance above 111.05, and by rule, any break above resistance is a buy signal. In this case, 112.90, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short STLD slightly near 112.90, target 106.39, Stop Loss @ 113.16. Details

The technical summary data is suggesting a short of STLD if it tests 112.90 with a downside target of 106.39. We should have a stop loss in place at 113.16 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 112.90, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

STLD Ratings for March 22:

Term →	Near	Mid	Long
Rating	Weak	Strong	Strong
P1	0	0	90.90
P2	105.36	95.27	105.80
P3	112.90	106.39	121.66

Chart of STLD with Longer Term Pivots

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Don't over think it!  Trading Steel Dynamics (NASDAQ: STLD) or any other stock can be rewarding if the simple rules of technical analysis are observed before making any decisions.  This should be an integral part of the investment process.

Warning:

This is a static report, the data below was valid at the time of the publication, but support and resistance levels for STLD change over time, so the report should be updated regularly.  Real Time updates are provided to subscribers.  Unlimited Real Time Reports.

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Instructions:

The rules that govern the data in this report are the rules of Technical Analysis.  For example, if STLD is testing support buy signals surface, and resistance is the target.  Conversely, if resistance is being tested, that is a sign to control risk or short, and support would be the downside target accordingly.  In each case, the trigger point is designed to be both an ideal place to enter a position (avoid trading in the middle of a trading channel), and it acts as a level of risk control too.

Swing Trades, Day Trades, and Longer term Trading Plans:

This data is refined to differentiate trading plans for Day Trading, Swing Trading, and Long Term Investing plans for STLD too.  All of these are offered below the Summary Table.