Long Position on STLD @ $85.00 on 8/26/2022 (Momentum)

Steel Dynamics, Inc. (STLD) operates as a steel producer and metal recycler in the United States. 

It operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations.

The Steel Operations segment offers hot roll, cold roll, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; and engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars.

 The Metals Recycling Operations segment purchases, processes, and resells ferrous and nonferrous scrap metals into reusable forms and grades. Its ferrous products include heavy melting steel, busheling, bundled scrap, shredded scrap, steel turnings, and cast-iron products; and nonferrous products comprise aluminum, brass, copper, stainless steel, and other nonferrous metals. This segment also provides transportation logistics, marketing, brokerage, and scrap management services.

The Steel Fabrication Operations segment produces non-residential steel building components, such as steel joists, girders, trusses, and steel deck products.

Steel stocks are moving higher as several stocks in the group raised their prices recently. STLD has a domestic operations and it is not sufering from strong dollar. On July 20th, Steel Dynamics reported 2nd Quarter June 2022 earnings of $6.73 per share on revenue of $6.2 billion. The consensus earnings estimate was $6.34 per share on revenue of $5.8 billion. Revenue grew 39.1% on a year-over-year basis.

Shares are on the cusp of breaking out of their bullish "cup and handle." Higher share prices are expected.

Entry Point: $85.00

Stop Loss: $81.50

Trading Range: $50.54 - $100.37

Target Price: $93.50

Position closed on 9/2/2022 at price of $81.50 with a -4.12% loss in 7 days.

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