US Steel Corp. - X
The price is hovering right in the middle of the Bollinger Bands, the 8, 21, and 200 day MA are converging, and finally the momentum, what little there was, seems to be weakening. The fact that the earnings were just released a short while ago strongly leads me to believe that the price should channel within a short range for a while.
The trade above shows a profit if X remains between $36-$40. This means that a mere 5% move in either direction could put me at a loss. However, if I manage the trade well, I can probably extend this range to around $32-$44. Given my original hypothesis, I strongly believe X will not move out of the 32-44 range in the next two weeks.
Prudential Financial - PRU
The setup is very similar to the US Steel trade. Once again, my profit range as of now is $44.50-$50 but can be extended to $42.70-$52.
Both these trades have a very high probability of success and the risk/reward ratio is within my risk appetite. I will post any adjustments I make as the trade plays out.
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