General Steel (GSI) Big Breakout, Wait For Retrace

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04:11:34 pm on March 16, 2014

The play right now is in the metals space – gold, silver, industrial metals, mining, etc.  The steel sector as a whole isn’t doing real well right now, but what the heck steel it’s a metal and GSI is showing massive buy demand on a recent breakout.  Take a look at the chart below.  At the beginning of March General Steel (GSI) staged a massive 60% breakout move with extremely heavy volume and now needs to retrace much of that move, providing a 2nd chance opportunity.   It has already retraced half of the entire move, but I believe there is more to go possibly down to the 1.15 – 1.20 level which would provide an excellent opportunity to scale in with a small 1st position.  Perhaps that move takes place quickly out of the gates Monday morning.

gsi stock

This is a stock that soared from just over a buck to above $19 in about 9 months back in 2007.  Could a move like that happen again?  It’s not impossible, but of course the chances are extremely slim.  That doesn’t mean you could get a quick double or triple out of this one in a very short timeframe!


Disclaimer: I have no position in GSI at this time, but may look for an entry within the range I described above.

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