While U.S. Steel (X) is basically already right at its 2009 bear market lows, I think a better tell going forward is whether premier Asian steelmaker, POSCO actually heads down to its own lows. For what it is worth, Warren Buffett’s business partner Charlie Munger has frequently praised POSCO as being, in his opinion, the best-run steelmaker in the world.
On the monthly chart below, consider that a bonafide breakdown from the descending triangle (purple lines) likely open up a possibility for a painful leg lower to its respective 2009 crash lows (light blue line).
With respect to materials bulls, they need a false breakdown and reversal higher in the worst way.
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Thank you Chess for all your great work. These materials are looking dismal like the EU could bring down Global Production.
Love your objective ideas.
Thanks!
Of course Munger praises the Chinese. Businessmen drool over the $2.19 per hour wages with no benefits labor force. Just ask AAPL.
They’re South Korean!
another well-thought-out post
Thank you, Juice.