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ZEUS Trade Setup & Entry

ZEUS (Olympic Steel Inc) offers an objective short entry here on today's breakdown & snap-back to retest the rising wedge pattern from below. The ideal entry range is between 28.40 and 27.30 while the current price is 27.96. Suggested stop over 29 if only targeting T1 or over 30 if targeting T2 (or using a 3:1 or better R/R based on your entry price).

ZEUS daily July 20th

ZEUS daily July 20th

ZEUS is one of several steel stocks that are on my watchlist as potential short trade candidates along with the somewhat related/correlated precious metals sector. With additional trade ideas via GDX/NUGT as well as individual steel companies likely to be added soon, take that into consideration if shorting ZEUS in order to allow room for additional exposure the to metals & mining sector. Also note that ZEUS is scheduled to report earnings before the market opens on August 2nd.

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Jul 20, 2016 12:11pm|Categories: Completed Trades - Short|Tags: |4 Comments

4 Comments

  1. rsotc July 20, 2016 12:40 pm at 12:40 pm

    Daily chart of the steel sector confirming the ZEUS short entry:

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  2. Bullman July 27, 2016 11:21 am at 11:21 am

    Is this stopped out? for T1 target?

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    • rsotc July 27, 2016 11:51 am at 11:51 am

      @Bullman Yes, the suggested stop for those only targeting T1 was any move above 29.00 which briefly occurred today. Of course, suggested stops are just that, suggested. However, all official trade ideas are considered stopped out & removed from the Active Trades category only when the maximum suggested stop on the trade is exceeded.

      The earlier high on ZEUS today corresponded perfectly with a backtest of the large rising wedge pattern on the daily time frame (see chart below) and so far, prices immediately reversed following that backtest & are trading below the 29 level right now.

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  3. Bullman July 27, 2016 12:44 pm at 12:44 pm

    Perfect, thats what I was thinking. Perfect backtest, and no follow through for the breach into the wedge

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