A charting view on BlueScope (BSL)

The Australian market has recently been edging higher but much of that is due to earnings upgrades in the commodities space. The sector has done it real tough in the last few years but this year we have seen some of these stocks provide some great performances. With the rest of the market performing poorly in comparison, investors are unsure whether there is enough upside left in the commodities space to make a switch. One of the great performers of this year has been BlueScope Steel. Although iron ore, a key input, has seen significant price rises, steel prices have almost managed to keep pace. Cost reductions and productivity gains have also helped BlueScope Steel’s earnings improve remarkably. The market has reacted favourably to these changes and buying interest has swept back into the stock. A Trump victory in last month’s US election has only further fuelled GDP growth expectations – which in turn flows through to an interest in steel stocks. (VIEW LINK)