Looking at the market this morning and finding a trade in SXC

A. Materials Sector is strong today

B. CUE Edge Insight shows SXC as undervalued

C. The steel industry within the materials sector is also very strong

D. CUE Vital shows SXC fundamentals very strong, undervalued, earnings quality and short squeeze

E. Weekly candle bullish

F. Daily candle breakout

SXC A.jpg  SXC B.jpg  SXC C.jpg  SXC D.jpg  SXC E F.jpg 
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I think one has to be careful of Next EPS date. As in this case it was on 8th May and that could be explaining the sudden drop int he stock price? 
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I am usually careful just before or immediately after earning. $ES also was just below its daily Memory resistance. That was a reason to avoid taking many (or any) new long swing trades.

Having said that, to my eyes, the stock did NOT have a sudden drop in price. The price movement that I see in SXC is normal. Even orderly on the daily chart. And a CUE trader may be comfortable with the moves and try to profit from it.

Here are a few of my observations on the daily chart:

1) Headwind reversal from which price recovered. Could one start to think about buying from then?

2) Retest/double bottom/false downside reversal. Could one buy when the Bull Release came (using the Box Long set up)?

3) After earnings (Friday BMO), it went up. Created higher-high-higher-low. And also gave a GWF long setup on that day. 

4) The next day it pulled back, however, the Memory support held. The shakeup on Monday probably resulted in weak hands getting worried and stopping out. The CUE stop level was not hit. So CUE traders, if took the GWF setup, would continue to hold. Note that I usually prefer not to enter right on the day of earnings (unless using the precision entry technique using real-time 5-min CUE Precision Entry chart). As I posted separately, I did take a precision entry on Monday and am holding part of the trade with a profit.

SXC's price move is not extraordinary. Rather, it is orderly. Something that an attentive CUE trader is expected to be able to manage to her/his benefit. I seem to be able to do that. And if so, anyone else could - that is what I would think.

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