AK Steel Holdings - Nice Rally On Heavy Volume

AK Steel Holdings

shares are trading higher by $0.11 at $4.83 and has added nearly a dollar since its September 15 close of $4.06. Chalk up one to the good for the KeyBanc analyst who upgraded the issue from Underweight to Sector Weight on Monday. It should be noted that is the first upgrade from the major brokerage houses or banks since July 2015. The vast majority of coverage on this issue in between has been underwhelming at best. Along with nice price action, the volume over the yesterday and today has been noteworthy. On Wednesday, 24M shares changed hands as the issue added $0.42. Today's volume is on track to equal or even surpass as the 15M shares have traded with just under three hours remaining in the session. These numbers are considerably higher than its 20 day average volume of 12,2M. The increase in volume may signal that large players are beginning to accumulate the issue for a sustained run. In fact, back on July 27, the issue reached $7.09 and ended the session that day at $6.70. The positive price action on large volumes may be signaling a continuation of the rally. Be prepared for another flurry of buying activity if the issue can cross the $5 threshold. The reason for that being many institutions have in their charters not to invest in issues under that level.