US Steel setting up for a big trade
Looks like X is setting up another move down the a weekly horizontal support level at / around $21. This level has held support since Apr 2021 and this represents a high probability zone for a long position.
RSI is in a downtrend and while there was a false breakout above the downtrend, RSI has now broken below the key RSI level which has not been broken since the March 2020 Covid crash. Technically not oversold yet.
MACD has crossed below the zero line and is still dropping.
I will buy in around the $21 price. I typially start with stock and build layers onto the position if it appears to be holding support.
Typically in previous setups like this I will use stock then 90+DTE Call verticals, followed by OTM Butterfly call spreads. Potentially looking at using a Risk Reversal here as well.
RSI is in a downtrend and while there was a false breakout above the downtrend, RSI has now broken below the key RSI level which has not been broken since the March 2020 Covid crash. Technically not oversold yet.
MACD has crossed below the zero line and is still dropping.
I will buy in around the $21 price. I typially start with stock and build layers onto the position if it appears to be holding support.
Typically in previous setups like this I will use stock then 90+DTE Call verticals, followed by OTM Butterfly call spreads. Potentially looking at using a Risk Reversal here as well.
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