See chart:
Risk 10% overall. X is volatile. Upside potential is roughly 20%. 5-10% downside in GM and 10-15% upside in X.
I like this setup. You can see that the pair of stocks is volatile and there is a lead-lag relationship that shifts back and forth. Given how GM is leading higher, it gives me confidence that X will find a bottom here and...
Sell Area - $21.50 - $22.30
Target Area - Around $19 (Near previous lows)
Stop Limit - $22.80
Reasons to sell:
- Massive trend line resistance from March has yet to break through
- Daily stochastics almost overbought
- General weakness in the steel sector compared to the overall market
- Reversal candle stick
www.TradeForPay.com
Nice base pattern. Volume two days ago on the price breakout at $29 sets up a measured move to higher levels.
Risk: 3 pts risk (3 x's average daily range of roughly $1)
Reward: Upside potential of $3-$4 up to $32-$33 area.
Today's weaker than expected GDP results barely dented US Steel Corp's stock price. I like that the bad news helped "X" return to its...
