Premier Asian steelmaker, POSCO, has displayed notable relative and absolute strength in recent weeks. Earlier this year, we had looked at PKX for signs of whether the global materials/industry complex would, in fact, break down at major support levels, or instead find buyers with conviction. Instead of breaking down, though, the likes of AA FCX, as well as the steels as a whole, have found some interested bulls.
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 updated weekly timeframe, note the confirmed inverse head and shoulders bottoming formation (slanted neckline to the upside), with a projected price move up to around $90.
If you are looking to be a China bull here, this may be one factor in your favor. $78 needs to hold now to avoid a bull trap.
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What do you think about APPL here?
Promising. Looking to get back in soon.