Best Stock PIck – US Steel (X)
US Steel makes it to our Best Stock Pick list. With the markets closed I am going crazy and decided to look for other trade opportunities The chart of US Steel (X) is looking very good. Note the bottoming tails on the candlesticks at the $24.50 level which allows us to identify where to place our stops to keep a loss very small. I will probably open a position on Tuesday morning and only add to that position on a breakout above the $26.29 level. I annotated the linked chart to show how it has broken out of a pennant formation similar to KORS. The caveat here is that you must watch the US Dollar! If the USD rallies it will pressure US Steel and other commodities so please be open minded about a currency' ability to influence stock prices.
Members, I will be sending out an alert on both Michael Kors (KORS) and US Steel (X) if and when we make these trades. Probability is high.