My intermediate-term pattern work in U.S. Steel (X) argues strongly that last week's low at 51.33 ended the correction off of the January 3 high at 61.18. If proven accurate, that means the price structure held the top of its 8-month rounded base-like accumulation pattern ahead of another powerful upleg.

Notwithstanding the intense volatility exhibited by X on a regular basis, my near-term work also indicates that the upmove off of last week's low at 51.33 exhibits the requisite form indigenous to the start of a new upleg.

With the foregoing in mind, I will remain long X unless and until 51.33 is violated, otherwise looking for a new upleg that propels prices to new post-July highs above 61.18 towards 65.00.

 

Kathy Lien is Director of Currency Research at GFT, and runs KathyLien.com.