Mechel Steel Grp is a Steal!

Hey guys!

I'm bouncing around with the posts (I was going to first work on the Canadian Stocks and the "Do it yourself" section) but I figured I would introduce a steel stock that I belive is poised for an incredible run! The stock is Mechel Steel Grp ADS (MTL) at $36.48! The stock has been behaving quite well, despite high oil prices and is just a few cents shy of its 52wk high!


Mechel Steel Grp 1yr chart


Looking the chart, we can see that the stock hasn't even been trading for a year, which makes it still a new issue! From this distance, you can also notice the base that MTL has been forming! All that is missing is the cup and handle on it! Soon enough!






Mechel Steel Grp 6 month chart



Beeeaaauutiful base!! Notice some spikes in volume? That is the institutional investors buying!








Mechel Steel Grp 2 month chart



With this chart, we can see that whenever the stock dipped, heavy institutional buying (characterized in the spikes of volume) occured and the stock continued to chug along. Lower volume at the end of September has hindered the stock and has not allowed it to clear the $36 dollar range. Because of this, the stock will begin working on the "handle" portion of its cup-shaped base. Once awareness of the stock (or good news and other events) increases, I expect the stock to easily clear the $38 range!