Steel Dynamics (NASDAQ:STLD) was downgraded from Buy to Outperform at CLSA today. The stock closed yesterday at $15.89 on volume of 3.8 million shares, above average daily volume of 2.8 million.

There is potential upside of 7.2% for shares of Steel Dynamics based on a current price of $15.89 and an average consensus analyst price target of $17.04. The stock should find initial support at its 200-day moving average (MA) of $14.17 and further support at its 50-day MA of $13.53.

In the past 52 weeks, shares of Steel Dynamics have traded between a low of $8.78 and a high of $20.70 and closed yesterday at $15.89, which is 81% above that low price. The 200-day and 50-day moving averages have moved 0.46% lower and 1.42% higher over the past week, respectively.

Steel Dynamics, Inc. owns and operates a flat-rolled steel mini-mill, as well as a cold mill. The Company is also constructing a plant for the manufacture of direct reduced iron. Steel Dynamics's customers include intermediate steel processors, steel service centers, and end users such as manufacturers of cold-rolled strip.

SmarTrend recommended that subscribers consider buying shares of Steel Dynamics on January 4th, 2012 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $14.32. Since that recommendation, shares of Steel Dynamics have risen 11.0%. We continue to monitor STLD for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.