There's a fantastic swing-trade buy on shares of AK Steel (NYSE:AKS) based on the gap fill support level it tagged on Monday. This is a huge level and will likely trigger a monster bounce in the next few days. The price point entry buy level is the gap fill at $6.15. The upside bounce expected is $7.65 (+25%).
To put it into perspective and show the bounce isn't that big, AKS was trading over $11.25 in mid January. That means AK Steel has declined 45% in just a few months. To expect a bounce back to $7.65 is nothing. The recent sharp decline in AKS shares, along with other steel stocks, is due to President Donald Trump's cozy behavior with China. The steel companies had hoped he would smack tariffs on China steel coming into the United States. That looks very unlikely at this point. However, as I always say, it is likely that he will Tweet about possibly doing it in the near future, causing an instant pop in these stocks. Note the chart below.
