The overall tend is Bullish and not Lateral. There's a One White Soldier on the Daily Charts. The Hourly is showing a nice Flag pattern with support at the 100 MA and a potential bullish breakout at the 200 MA.
the united states steel corp (X), may be in a down channel, but I have a long bias, if the stock reaches YP or 29.60 area, and bounces from there to break the channel to the upside.
the possible target would then be 52.50.
In the watchlist...
X announces earnings tomorrow (Tuesday) after market close, and with its implied volatility rank and implied volatility metrics, it's ripe for a volatility contraction play. Here are two possible setups, which naturally might need to be tweaked this way or that depending on price movement intraday tomorrow.
Feb 17th 29/38 Short Strangle
Metrics
Probability...
X breaks bearish trend line .To confirm bullish trend X needs to break 34.20 and hold above 33.75 for the day.If X holds then the bullish pattern is confirmed and my target is 37 for the end of the week.
X seems forming a possible Flag formation, clearly seen in weekly chart. It also shows a small downward channel. At the breakout it can go up to 55 area, and to catch the gain we would consider $33 March Calls.
Trade Criteria
Date first found- January 25, 2017
Entry Target Criteria- Speculative entry point at current price, confirmation at the Break of channel...
I think X will retrace till 33.76 resistance level and try to break though trendline at 34 -34.20 around 12:30 til 1:00 pm then fall back to 33.76 retrace a little then fall back to 32.26 by end of the day or next day open
According to the 4hr MACD X has some room to go up 36.22 ,I think 33.80 to 34.30 is a good buy in.Set stop loss at 33.50, The end of the month there should a lot of volatility with earning coming out and trump becoming president which we will see how fast he will implement his infrastructure plans. Which would be make this stock very bullish possible 44 in March
