SMU MoMo Index Continues to Indicate Downward Price Direction

Wednesday, May 17, 2017 3:16 PM Written by 

The Steel Market Update Steel Price Momentum Index (MoMo) for hot rolled steel in the United States remained negative this week for the fourth consecutive week, following an eight week streak of being in positive territory. MoMo is a trailing indicator and shows the relationship between the current U.S. hot rolled coil price movements against the previous 12-week average price as a percentage. A positive MoMo index indicates hot rolled steel prices are moving in an upward direction compared to the previous 12 week period, while a negative index number indicates a downward direction in prices.

MoMo should not be confused with the SMU Price Momentum Indicator which is a forward looking indicator. The SMU Price Momentum Indicator is currently at Lower indicating that steel prices are expected to remain steady over the next 30 days.



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Brett Linton

Brett Linton is a Steel Industry Analyst for Steel Market Update. He is a graduate of North Georgia College & State University with a Bachelor's degree in Finance. Mr. Linton joined SMU in April 2010 as a Research Analyst and is responsible for data management and analysis, market research, developing our visual aids, and writing articles about the economy and steel industry. For more information, you can reach Brett at Brett@SteelMarketUpdate.com.

Website: www.SteelMarketUpdate.com
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