Friday, June 16, 2017

US Steel Is Ready!

Long or Short?

Since January 2016, US Steel (X) has broken three primary uptrend lines, but each break came only after new highs had been achieved.  Companies that show consistent action like this are ideal trading vehicles.

X is now at a critical juncture, where its strong secondary uptrend line may soon be tested.  If it rises significantly, a new primary uptrend line will have been established and new highs will become a real possiblility.  If it breaks, a good shorting opportunity will likely be posssible as it back tests.

Optimum Trade Zone!

The Chapman Wave reset at 19.52 is a good bogey to work around.  A two lows stop loss at {19.51} was available at the close today, the risk being about 3.3% (20.15/19.51).  Other trough lows are at 19.20, 19.16, and the six month low of 18.55.  Even stopped at {18.54} the risk would have been less than 10%.

Big buck traders should keep an eye on this one.

In a Curved Universe
the Straight Line is King!

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