Some heavy metal (Fabrication) with $ATI – April 5, 2022
ATI
This is Scott with your Chart of the Day. Let’s take a look at a heavy metal fabrication chart with ATI ( NYSE: ATI ).
Now, as we know, a lot of breakouts in this market are not working. And so I am really just trying to keep an eye on stocks that are in bases and above all of their major moving averages, like ATI ( NYSE: ATI ).
Here on ATI ( NYSE: ATI ), you can see, if I zoom out, we are above all the major moving averages and price recently is bumping up against this 28.40 level. If I zoom out you can see that kind of corresponds with some old resistance from way back here. You can see how price really kind of had trouble with this old level through 2018, 2019, and then it finally broke down.
A lot of past resistance is coming into play here and the stock is just consolidating, so it’s healthy price action within an uptrend. But what we want to see now is a move above 28.41 coming on volume. We need that heavy volume, we need conviction in this move because it is such an important level of resistance.
Even here on the weekly, it shows the same thing but a longer time frame. It is a clear level that the stock just could not break out of from years and years ago. And so we are revisiting now and we have got to do it and do in on volume. So I will be watching that 28.40 level for a strong move and a strong close and way heavier than average volume.
I really want that volume to kind of suck me into price, get me to buy the stock. Because knowing that long area of resistance I know we need heavy volume to really push it through. So I will be watching for a move through 28.40 here on ATI ( NYSE: ATI ) with heavy volume.
I think it is worth adding to a watch list and maybe set an alert for about a month or so. That would really be ideal, in my opinion, because again, it is just kind of in consolidation and we don’t know when that break out of consolidation will happen.
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