The X (US Steel Corp) Active Long-term Trade has hit the third target (T3 at 32.25) for an 80.9% gain from entry. (The actual total return is considerably higher as the above average dividend yield has significantly reduced the cost basis on this trade since inception). T3 was hit on Wednesday on a sizable gap. As prices closed well over a point above the T3 level today, consider booking partial or full profits and/or raising stops according to your trading plan, on Monday if you have not done so already.

Also note from the updated weekly chart below that X has some substantial potential bearish divergences forming on the PPO & RSI although the ROC 57 remains in bull market territory. I might normally suggest booking full profits on a trade up well over 80% (dividend adjusted) and although I do believe the odds for a pullback before the next and final target, T4, is hit, the longer-term charts still look constructive & so X will remain an Active Long-term Trade for now. The previously posted weekly chart as well as the updated chart are listed in chronological order below for a quick visual reference on the trade. This 80%++ gain on X follows two previous trades on US Steel that were also very profitable, with this short trade on X closed out on May 18, 2012 for a 26% gain followed by this long trade on X closed out on Dec 17, 2012 for a 27% gain.

 

For those new to RSOTC, the Long-Term Trade category was added to the site back on June 13, 2012 with the entry of the STM (ST Microeclectronics NV) Long-Term Trade, which was closed out on Sept 14th for a 29.7% gain. Long-term Trades are longer-term trend trades or investment ideas that have the potential for significant returns over a longer-term period, typically several months or even a year or more. This category of trade ideas might be useful for the longer-term swing trader or investor looking for investment ideas to supplement their existing portfolio and prefers a less active, more hands-off approach to investing.