US Steel Corp (X) base formation

NYSE:X   United States Steel Corporation

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 breakout support level to provide the rest of us a chance to buy shares at the breakout price that I personally missed the other day. Keep an eye on Bonds, if bonds rally sharply then this stock will likely fade. So, really, a long position in "X" is a short position in long term US Gov't Bonds, in my opinion.
By: Technical Tim, Friday, Jan 27, 2012, 11:37AM EST 29.11 last

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