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Is it Prudent to Book Profit on this Steel Stock – BSL

Dec 06, 2022 | Team Kalkine

Read Time :5 min

Is it Prudent to Book Profit on this Steel Stock – BSL

BlueScope Steel Limited

BlueScope Steel Limited (ASX: BSL) is one of the major manufacturers of painted and coated steel products globally.

As per the previous report on BSL as of October 6, 2022, a ‘Buy’ recommendation was given on the stock at AUD16.40, and noted below are the details of support and resistance provided in the previous report:

Recommendation Summary as on October 6, 2022

BSL’s Daily Chart

Source: REFINITIV; Analysis: Kalkine Group

Considering the resistance and target level achievement, current trading levels and risks associated, it is prudent to book profits at the current levels. Hence, a ‘Sell’ rating has been provided on the stock at the current price of AUD18.58 per share as of 6 December 2022 (Australia Time: 11:57 AM (GMT +11)).

Note: This report may be updated with details around fundamental and technical analysis, price/ chart in due course, as appropriate.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is December 6, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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