Possible short opportunity for this stock.
BEAR CASE:
Fundamentals very bad (Goldman sees no profit)
Key resistance at $52
Bear rally bounce to hit the 23.6 FIB line drawn from JAN high to low 29 JAN
This was just a minor rebound from the bear trend
Monthly chart, STOCHASTIC crossing downwards
BULL CASE:
Market going upwards
Steels doing well across sector except this company
Stochastic crossing upwards
Oversold
I think there is a 70% chance that US Steel will underperform and continue its bear trend towards $35
Pull up historical charts of US Steel, X may repeat a similar bear trend as before.
PLAY
SHORT AA at $52
COVER target at $35
However, take not of market condition. If the economic indicators are too good, i.e NFP report is fantastic, then do not play this. Allow it to climb higher before shorting, perhaps $60.
Short term short for now. Monitor the market condition.
No comments:
Post a Comment