$USAP - steel manufactureTechnically, the stock broke out of a flat zone ($5.8-$8.8) in February. On Friday, it bounced off the uptrend line that started in November 20 and the resistance line at $8.93. I expect it to break out of the converging wedge that has been formed since February. Next, a strong level of resistance will be the downtrend line from February 19. The volume profile clearly shows two major zones at $6.8-7.8 and $13.9-15.9, Suggested growth targets:
- The downtrend line at $10.3 (+12.6%) .
- At its breakdown a quick exit to the level of $12.7 (+38.9%) is possible.
- The third target is the level of VWAP at $13.5 (+47.7%).
If bought at the current level I would place the stop below the 200D EMA, i.e. below $8.7 (-4.9%)
It's not trade reccomendation.
