United Steel (X) Leading The Charge

Happy New Year, folks!

United Steel (X) is leading the way for the basic materials sector. United Steel had broken out of a nice basing pattern formed over a few month and had also gap up above its horizontal resistance and is now nibbling on its current resistance at $28.50. A close above $28.50 would be extremely bullish for this stock.

Click on chart to enlarge (Daily Chart)

Click on chart to enlarge (Weekly Chart)

Possible Change in Trend

What a week it was! The major indices broke out of their descending triangle and went on a tremendous breathtaking rally before facing a near term resistance. Somehow, the trend looked like it is changing slowly from bearish to bullish. Stocks looks to be bottoming especially with a Right Angled Broadening formation spotted on the DJ Transportation Average. We'll have to be patient and wait for the breakout higher before placing any long bets. Nonetheless, the higher time frame bullish players are already moving in as the weekly charts of stocks are looking to form bullish reversals.

S&P500

Dow Jones Transportation Average

Bank of Ameria

Goldman Sachs