Specialty metals producer Allegheny Technologies (ATI) was trading 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.
Allegheny up on Earnings and Steel Pop
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.
Allegheny Technologies (ATI) Stock Chart with Weekly Bars
For an introduction to cycle analysis, check out our Stock Market Cycles video.
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The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
