The steel industry acts as a pillar industry of China's national economy, shows the level of the national economy and an important indicator of comprehensive national strength,it directly impacts on the development of defense-related industries and construction, machinery, shipbuilding, automotive, appliance and other industries. As China's economic lifeline, and a national basic industries, the investment prospects for the steel industry is worth every investor's attention.
First this article will explain the background and significance for the topic, with the preliminary judgment for the basic characteristics of China's steel industry and the challenges faced on 2010 investment prospects for China's steel industry ,I will make a directional judgment for China's steel industry investment prospects. Then according to the characteristics of China's stock market, combining with the case of Baosteel used in this artical, using appropriate methods of analysis, concrete analysis of how to judge trading in the stock during the shock signal.
This article will use the classic short-term stock market indicators - relative strength index (RSI) to analyze the Baoshan Iron & Steel (600019),it will explain how to use the RSI indicator to judge trading signals, then select the specific transaction time, according to RSI overbought and oversold theory to find the critical point, combined with the ups and downs of specific forms to make sure the RSI’s accuracy in China’s stock market volatility.
KEYWORDS：Iron and steel industry，Investment Prospects， BaoSteel，RSI
