Buy US Steel on the Triangle Pattern Breakout

[mholte]

Buy US Steel on the Triangle Pattern Breakout
US Steel made a nice move over all three of my favorite moving
averages today, the 20, 100, and the 200 day. Stochastic is confirming
the buy signal with a higher low and it was all done on an increase in
volume.

If you take the time to draw in trend lines it also has broken out of
a measurable triangle pattern. The high of the triangle is at $31.64
minus the low of the pattern $25.49 gives you a possible 6.15 points
of upside above the high of the triangle. In other words your target
price is calculated by adding 31.64 + 6.15 giving you a target price
of $37.79

However there is also resistance at the high of the triangle and that
is a good first target to take some profits or at least move a stop
order up to lock in a profit.

Here is the trade:

Buy at the market or no higher then $29.58 or lower then $28.28
Place a stop loss order at or below yesterdays low of $27.80
First target to lock in profits $31.64
Second target is $37.79