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.
Aroon Indicator for ATI shows an upward move is likely
ATI's Aroon Indicator triggered a bullish signal on July 03, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 283 similar instances where the Aroon Indicator showed a similar pattern. In of the 283 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on July 02, 2025. You may want to consider a long position or call options on ATI as a result. In of 93 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The 50-day moving average for ATI moved above the 200-day moving average on May 30, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ATI advanced for three days, in of 311 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for ATI moved out of overbought territory on June 30, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 62 cases where ATI's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for ATI turned negative on May 29, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ATI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
ATI broke above its upper Bollinger Band on June 27, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
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 70, 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 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 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 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 (6.540) is normal, around the industry mean (4.462). P/E Ratio (31.467) is within average values for comparable stocks, (40.882). ATI's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.044). Dividend Yield (0.000) settles around the average of (0.098) among similar stocks. P/S Ratio (2.836) is also within normal values, averaging (317.655).
Industry description
Market Cap
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a manufacturer of steel and specialty metals
Industry MetalFabrication
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