Allegheny Technologies (ATI) facing two layers of resistance
Specialty steel manufacturer Allegheny Technologies (NYSE: ATI) has been trending lower since late February. A trend channel has formed in the last three and a half months and the upper rail is formed by connecting the high from February with the high from April. The lower rail connects the lows from March and May. A recent bounce in the stock has brought the stock up to the upper rail at this time.
You can also see that the 50-day moving average is in the same area. This means the stock is facing two layers of resistance. The daily stochastic readings hit overbought territory and made a bearish crossover on June 10. This is yet another potential problem for the stock.
%The Tickeron Trend Prediction Engine generated a bearish signal for Allegheny on June 6. The signal showed a confidence level of 87%, and 70% of past predictions on the stock have been successful. The signal calls for a decline of at least 4% over the next month.
Allegheny has struggled as a company in recent years. Earnings have been declining in recent years and they were down 63% in the most recent quarterly report. In addition to the declining earnings, the ROE is below average at 11.5% and the profit margin is only 5.7%.
I hate to post a bearish article on Allegheny as my father retired from the company and I actually worked in one of their factories as a summer job when I was in college. But the chart and the indicators speak for themselves.
ATI in -2.26% downward trend, declining for three consecutive days on December 30, 2024
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where ATI declined for three days, in of 300 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 50-day moving average for ATI moved below the 200-day moving average on December 23, 2024. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
The Aroon Indicator for ATI entered a downward trend on January 02, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ATI's RSI Indicator exited the oversold zone, of 20 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 52 cases where ATI's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on January 03, 2025. You may want to consider a long position or call options on ATI as a result. In of 100 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ATI just turned positive on January 02, 2025. Looking at past instances where ATI's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ATI advanced for three days, in of 304 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ATI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.498) is normal, around the industry mean (7.838). P/E Ratio (21.727) is within average values for comparable stocks, (25.086). ATI's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.589). Dividend Yield (0.000) settles around the average of (0.102) among similar stocks. P/S Ratio (1.960) is also within normal values, averaging (305.182).
Industry description
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of steel and specialty metals
Industry MetalFabrication