Russel Metals (TSE:RUS) stockholders were definitely smiling on Monday as the company’s shares gapped up above the key 200-day moving average. The news certainly appears to be revitalizing investors, who continue to demonstrate optimism by pouring in fresh capital. A major cause of concern in trading with companies like these is getting in at a level when stocks have a clear floor in terms of support.
Having a floor like that moving average signifies what could potentially see investors viewing the sector in a positive light, translating that onto results going forward in trading and stock performance.
Action continued its bullish momentum in Monday’s trading, causing its shares to trade at a high of $40.42. Trading during various markets is an unpredictable beast however, no one can safely assume where these shares will head next in terms of fluctuation. For the day on Monday, trading volume exceeded most experts’ expectations at 475,396 shares. This in general would indicate buyers and sellers alike remain engaged.
Our previous 200-day moving average was noted at $39.36. Any break in the high and above that value we thought was extremely crucial, as it now gives buyers a great deal of impetus as previously stated. In this backdrop the values can provide the overall trend to market direction and it is normally used to point these various turning points by analysts, given historical behavior and trends the general levels when broken can point these turn around moments.
Russel Metals (TSE:RUS) closed Monday at $40.24, retaining an eye on growth in stocks and looking at their potential to drive capital gains over the coming months.