Update: as you can see from the chart below, X did return to the breakout level (31.19) and bounced nicely. However, it has since broken down back below. I’m not that troubled by this event because it’s tracing out a very nice 3 wave corrective move that has, as of this blog post, completed. Additionally, if you look below you’ll see that the trend line it’s sitting on has to hold. If break below current levels or below 22, then the thesis that X has begun a big bull run is in doubt. IMHO – this is the best chance at current levels or down to 22 to try and potentially ride the next run higher.
US Steel – X has gone back to the neckline. Anywhere in the zone of 27-21 should begin another advance. Am wrong if we get a daily close below the red trend line.
CLIFF NOTES: believe this breakout in X is real and it “should” come back down to highlighted areas for another BUY.
CLIFF NOTES: this break out looks real! So, we have completed a pattern and would look to BUY in/around the 32 level as that should offer support and look to hold this for an investment…. a mirror image foldback is a great pattern to see and fine … basically a PATTERN comes into a level and then goes “out” the same way … the red line in the chart below is the point in price/time that the mirror image foldback starts …what is happening on the right side of the line is happening in the same manner going back up left. IF this is a CORRECT mirror image foldback THEN we shall see quite the run in “X”….it’s just beginning. Strategy is to buy the “kiss of the neckline” and then off she goes ….
will update as 32 gets closer in looking at the form/proportion of the pullback that should happen in/around here or perhaps a little higher.