Product
July 23, 2020
HRC Futures: Selling Rallies Has Been Working for Months, Will it Continue to Work?
Written by David Feldstein
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. David has over 20 years of financial market trading experience and has been active in the ferrous futures space for eight years. David earned an MBA from the University of Chicago Booth School of Business with concentrations in economics, statistics and analytical finance.
On Tuesday, U.S. Steel announced a $40/st price increase, which was followed by a number of other domestic mills. On Wednesday, U.S. Steel announced it is restarting its #8 blast furnace at Gary Works on Aug. 1, expecting higher demand in the weeks and months ahead. Futures have rebounded $15-$20 following the explosion at ArcelorMittal’s Burns Harbor facility last week. The rolling 2nd month CME Midwest HRC future popped above its downtrend that started in early June. Is this technical pattern confirmation that prices will move higher from here?
