Reliance Steel and Aluminum (RS) PriceWatch Alert Shows Bullish Technicals

Reliance Steel and Aluminum (NYSE: RS) closed yesterday at $36.13. So far the stock has hit a 52-week low of $12.58 and 52-week high of $78.44. Reliance Steel and Aluminum stock has been showing support around 33.65 and resistance in the 38.01 range. Technical indicators for the stock are Bullish and S&P gives RS a weak 2 STAR (out of 5) sell rating. RS appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Sep '09 30 covered call (RS IF) for a net debit in the $26.93 area. That is also the break even stock price for this trade. This covered call has a 129 day duration, provides 25.46% downside protection and an 11.40% assigned return rate for a 32.26% annualized return rate (comparison purposes only). Reliance Steel and Aluminum has a current annual dividend yield of 1.06%. source：www.marketintelligencecenter.com