The Relative Strength (RS) Rating for Steel Dynamics headed into a higher percentile Tuesday, as it got a lift from 70 to 74.
IBD's unique RS Rating tracks market leadership by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the trailing 52 weeks stacks up against all the other stocks in our database.
History shows that the market's biggest winners typically have an RS Rating of at least 80 in the early stages of their moves. See if Steel Dynamics can continue to rebound and clear that threshold.
When To Sell Stocks To Lock In Profits And Minimize Losses
Steel Dynamics broke out earlier, but has fallen back below the prior 138.72 entry from a cup with handle. In the case where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new pattern to take shape. Also keep in mind that the most recent pattern is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
Although earnings and sales growth came in at -41% and -5%, respectively, in the latest report, that showed improvement for both earnings-per-share and sales.
The company earns the No. 2 rank among its peers in the Steel-Producers industry group. Tenaris ADR is the top-ranked stock within the group.
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