X’s Crash, Partial Retrace, and Return to Crash Low is a Neely Set-Up for a Big Move Up
United States Steel Corporation (NYSE:X) is trying to put in an island bottom just below VWAP of the purple megaphone. A breakout from that island bottom through VWAP would set up a move to the megaphone top.
After a stab at VWAP from the top, a breakout from the purple megaphone would target roughly the all-time high, depending on exactly how long it takes for everything to play out.
The long-term chart is also one of my favorite Neely set-ups–a crash, followed by a partial retrace and extended topping, followed by a return to the crash low. Next target tends to be the pre-crash high.
X Appears to be Putting in a Beautiful Rounded Island Bottom Just Below Its Gap Down and Purple Megaphone VWAP