Reliance Steel & Aluminum to Potentially Pullback after Gaining 2.15% Yesterday (RS)

Reliance Steel & Aluminum （NYSE:RS） traded in a range yesterday that spanned from a low of $40.85 to a high of $42.11. Yesterday, the shares gained 2.15%, which took the trading range above the 3-day high of $41.95 on volume of 632,000 shares. Often times after large one-day gains, short term traders will seek to take profits and, as such, investors should be cautious.

Shares of Reliance Steel & Aluminum are currently trading above their 50-day moving average （MA） of $40.70 and should find resistance at their 200-day MA of $43.47. Look for the MA to provide support for a short-term pullback in the shares.

SmarTrend has the shares in an Uptrend and expects the share price to pullback toward the $41.85 support level. Afterwards, we expect it to move upward with its peers in the SmarTrend Steel & Iron industry.