X’s crash, partial retrace and return to crash low is a Neely setup for a big up move.
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 setups — 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.