USX1 trade ideas
$X - What will earnings bring next week?In a little over the past 3 years X has seen highs and lows and in the process is making this huge cup and handle pattern, going into its earnings next week. Earnings will determine its direction for the most part but based on the overall economy and the border wall and need for steel, it might just be getting started.
If after earnings it stays in this narrow range of $38-$40, it should lead upwards.
US Steel meets resistanceUS Steel currently tests a long term trendline acting as resistance. This could lead to a short term correction, but the uptrend remains intact.
To enter new long position, first wait for the price to clear the resistance (at closing prices).
When holding long position you could take short term profit, and wait for a pullback to re-enter a long position.
I would not enter short positions here.
$X - US Steel - LongThesis
Long US Steel
The name has been showing strength lately along with several other US Steel and infrastructure related names.
Confirmations:
1. Higher highs on Day chart
2. Higher high on Week chart
3. Above 8 Day EMA
4. Above 21 Day EMA
Contradictions:
1. The price is currently below resistance so this may be an obstacle to price moving higher. If the price breaks above resistance, expect the resistance line to become support during a move higher.
Trade:
Long $X
Related Trade:
Long $AKS
X ,right shoulderX has 80% possibility to go down. see the chart. it will go to touch the bottom which generated at 2016/1, this down trend will until 2018/1
Limited risk opportunity to sell $XNegative RSI divergence on the hourly and lower time frames after today's monster rally up. Also weak volume so far today. Long wicked candle at longterm channel/flag resistance. If we go above the high of today $26.32 I would cover around there OR if we close above the channel.
It appears that $X has a history of these huge rally's into the resistance, then dumping back down to the lower channel support.
Long on U.S. SteelI bought this one back in May at $23.63 when there was the huge drop. It dipped lower and looks like it has recovered and we are on the move to the upside.
I am looking at adding in a call option, potentially to $28 or $29. Will update if I do that.
I hold long term positions for 1+ years and re-evaluate actively.
Happy Investing!
XUgly end to this week, but as expected the breakout failed by EOW. Every attempt higher since 18.54 was followed by a pullback to .61-.78 and so was this one. Not sure yet if this can resume higher to close the gap around 30, but it may do so or come down to test 18.54. Fundamentals seem mixed and sentiment is suddenly negative despite positive ER. This may present some interesting longer term buying opportunities - on watch.
