$SLX Steel Charts Holding

$SLX monthly chart shows a new bearish crossover for this month, July 2022; however, that move is beginning of the month with 19 more trading days to go and if we get a bounce, that 6 x 10 EMA will remain bullish.


$SLX weekly chart shows its bullish crossover (which started 5 OCT 20) is still intact. Trendline kissed, tested, held last week.


This is one I hope to play. If I enter, I will use tight stop/losses. Will have to look over the options chains for calls which are a few months out. If there are no calls with high volume or high implied volatility, I’ll just play with normal share purchase.

$SLX daily chart is where I’ll watch the action for a breakout from it’s newest/current down trendline (secular down trendline inside the bigger down trendline.) If we get a breakout there, I’ll enter. I also am keeping my eyes on the RSI 2 and Slow Stochastic 5 at the bottom of the chart (circled in green).


So the way I’d play this is buy a 1/3 nibble on a breakout from the trendline. Add 1/6 on a close above the 20 EMA. Add 1/6 above 50 EMA. Add another 1/3 on a bullish 20 x 50 EMA crossover.

Many times in setups like these in down markets, I’ll only get that first nibble notched. Then tighten the stop/loss daily. Then get stopped out with a small gain or loss.

Machts nicht. A gain is a gain. A tiny loss is a tiny loss. There will plenty more setups to come. To stack the chips, you got to be patient.

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And that’s why I patiently wait on setups.

Instead of bullish breakouts, $SLX broke down a horizontal support on the daily chart this AM, and it broke through the trendline support on the weekly chart which is also close to a bearish crossover on its EMAs.