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Today we are applying a Bear Put on BlueScope Steel Limited (BSL) which has bounced of a key level of resistance.

Analysis:

BSL is currently trading at $11.55.

BSL has been trading in a channel since late November and recently it bounced off the top of the channel (resistance level). The strong bearish move today helps confirm that BSL should continue back towards the bottom of the channel (support level).

A Bear Put will profit both from bearish and sidewards movement, so will profit if BSL heads back to support, but also if it does it slowly.