AK Steel has been sold off by investors who cannot stand the idea that AK Steel is going to lose money as Iron Ore price advances.
However, AK Steel may be able to raise prices again should Iron Ore price indeed rise more than 30%.
I think the current sell off is overdone, and I am playing AK Steel for a rebound.
My target is $22.
Today, I have observed some buying pressure on AK Steel, there is demand at $18.6 level, that’s where I have bought AKS.
Should be an easy $22 and maybe higher in 2 months.
This is in line with a rebound in the Steel sector
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