Steel Dynamics (STLD) - May 19, 2008

[Harry Aloof]

From Wall Street Trader's Column

STEEL DYNAMICS INC (STLD-Nasdaq): Technical Viewpoint: From a low of $28.86 on Mar 10, 2008 prices rallied, reaching a high of $39.25 on Apr 22, 2008. A decline saw prices pull back, reaching a low of $32.70 on May 1, 2008. Another rally saw prices penetrate resistance line "A", closing yesterday at $37.92. Technicals: MACD Index (MACD): A Buy Alert! was given on May 15, 2008 when the solid line crossed the dotted line to the upside. Support: Remains at $34.00. Resistance: Is at $39.25. Point & Figure: Reversed to the upside on May 16, 2008. A P&F downside reversal takes place at $35.00. Summary: Technical indicators have turned bullish. BUY! STEEL DYNAMICS INC (STLD-Nasdaq) @ $38.13 Stop: Use a protective stop of $36.13. STEEL DYNAMICS INC is currently trading @ $37.92 plus $1.55 on May 16, 2008.

Price Objective: $49.50.
Risk/Reward: $2.00 VS. $11.37
Today's Risk Reward Ratio: 6:1