Specialty metals producer Allegheny Technologies (NYSE:ATI) was trading 5% higher on Tuesday morning after exceeding Wall Street expectations. The company reported earnings per share of $0.32 and total revenue of $979 million, compared to analyst estimates of $0.24 and $933 million.
As well, Chinese steel futures rose nearly 2% on Tuesday, hitting a five-week high. As inventories declined and worries about demand subsided, the mood of the market improved with regard to steel prices.
In analyzing the market cycles on the weekly chart below, it is noticeable that ATI has benefitted from positive momentum. As the last cycle ended, the low was higher than the low made at the beginning of that cycle. This suggests that a test of the $30 high in coming weeks may be likely.
