On Monday morning March 1, Mike Paulenoff alerted MPTrader members to a potential up-move in U.S. Steel (X):
"If an infrastructure plan really is doable early in the Biden Administration, and if the 440% upmove from the March 2020 low to the Jan. 2021 high has not discounted just about every conceivable growth scenario, then X is turning up into another upleg as we speak. As long as any forthcoming weakness is contained in the 16.40 to 15.85 support zone, then the 'apparent' Head and Shoulders top formation that is plainly visible is a major head fake prior to the initiation of a powerful next advance that projects to 26.20-27.40."
The stock, which was trading at 18.24 at the time, closed this week at 24.17. (See Friday's closing chart below.)
Mike has been guiding members on X since his post, as it crept higher, up and away from important "neckline" pattern support.
On Monday afternoon March 8, with the stock trading at 20.63, Mike wrote:
"My attached Daily Chart shows that today's strength has propelled X above its prior high at 20.12, to 20.68, which also is the first indication that the Head and Shoulders pattern that appeared to be maturing, is being invalidated right before our eyes. Typically, after a price structure tests the pattern's neckline, if it then pivots to the upside and climbs above the uppermost peak of the right shoulder-- and the strength is sustained, the top pattern inverts into a continuation of the dominant underlying larger uptrend. A close above 20.21 will go a long way towards invalidating the Head and Shoulders pattern, and instead, will trigger upside projections that indicate X is heading for a retest of its January high at 24.71."
The stock's intraday high of 24.46 came just pennies from that January high, and a full 32% above Mike's first alert about X on March 1.
Mike's decades of analyzing price pattern behavior recognized the potential for a failed Head and Shoulders top formation in X, and quickly communicated his skepticism to MPTrader members.
Yes, market experience matters, and Mike brings it to our discussion room every day in his analysis of stocks, stock index futures and indices, ETFs, macro indices, cryptocurrencies, precious metals, and more.
