$SHLD Bullish Chart Set-Up Into This Weeks Earnings Report?

Earlier this year I continued to note how $X  U.S. Steel was setting up for a potential sharp move to the upside.  I stated that, upon breaking long term trendline resistance, the stock could be the trade of 2014.

Here are three of my $X charts posted before the stock started its recent rally.

Sure enough $X broke resistance and today continued an impressive 2014 rally.  I see a similar chart for $SHLD heading into this weeks earnings report.  The stock remains on the cusp of breaking a long term trendline that when broken, will send the stock 30-50% higher in a short period of time.

In anticipation of such a move I have bought Call contracts that will profit should the stock breakout.  If SHLD moves sideways, declines, or makes just a muted upside move my call contracts will swiftly drop in value.

Here is the X and SHLD chart.  You can see how $X broke swiftly to the upside once long term resistance fell.

As crazy as it sounds right now, I think $SHLD could see $50 easily, short term, on that trendline break.


I am in the weekly SHLD $38 calls at $.50 and I am looking for October calls before Thursdays earnings report to capitalize on the potential move higher.


Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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