bluescope tanks, page-2

The below is an extract from the Australian Stock Report on Bluescope (BSL). It is clear that the stock will be retreat as usual after the yearly report and payment of dividend.
Recently Bluescope announced a lower profit than in previous years and indicated that its profit for the next six months will be lower still. As well as that it needs to spend over 300million Dollars on the reline of it's N°5 Blast Furnace.
It has been running on a very tight budget over the last 12 months. It's CEO is due to depart soon and at the current share price no doubt he will get a good price.

Bluescope in my view is an excellent short as it has been in previous years at this time of year.

REPORT:
BLUESCOPE STEEL 6 Mar ENTERED
Price at Update: 9.32
Opinion: Steel yourself for profits on the short side
Analysis
Bluescope Steel has been hit fairly hard, just like a great many other stocks in the AS X200. It is enjoying the light volume rally today, however, reaching towards its recent highs.

Unfortunately, it looks to be running into sizeable resistance as it nears the short term moving average of extremely light volume and its momentum is still strongly downtrending.

It appears the BSL is at the top of its newly formed trading range and running out of steam.

Importantly, this rally today has occurred on incredibly thin volume as the sellers let the stock breathe before hitting it again.

Much like the broader market and the ASX200 index, there is more selling waiting in the wings, and it is very unlikely that the bottom has yet been found.

Shorts may be taken here with stops well above recent highs and resistance levels, and targets well below $9.

Technical Analysis
In accordance with the ASR Capital Management Model, we would look to sell no more than 800 BSL at a limit of $9.17.

This would see our stops placed 25 cents above our entry price, and see us utilise approximately $733 worth of equity.

When BSL trades 18 cents below our entry, we will move our stop to breakeven.

As usual, we will not be risking more than $200 on this trade at our stops.

ASR will track this trade as a Report Support trade – with all important information regarding the trade to be conveyed within the major report updates.

We will only track this trade if the above criteria are met, but members may enter according to their own discretion based upon the above analysis.
BLUESCOPE STEEL (Code: BSL) SHORT