THU 2/26: STLD – CALLING A FINAL SELL SIGNAL @ $192.67 +7.9%

3:35 PM – Once again, we have a textbook example of how the 10 DMA acts as both support and resistance. The 10 DMA closely tracked price higher and higher until shares broke below that line on 2/13. Since then, the 10 DMA has acted as firm resistance and is now beginning to roll over. Additionally, the 50 DMA is approaching from below, which could begin to exert additional downward pressure on shares.

SELL SIGNALS:
2/5 (1/3) @ $192.46 +7.8%
2/12 (1/3) @ $205.87 +15.3%
2/26 (1/3) @ $192.67 +7.9%

OVERALL P/L: +10.3%

ULTRA Trader’s Tip: Respect the 10 DMA Shift

  • The 10 DMA is the heartbeat of short-term momentum. When it shifts from support to resistance, character has changed.

  • A break below the 10 DMA followed by repeated failures at that line signals institutional selling, not random noise.

  • When the 50 DMA begins rising into overhead price, it can act as a gravity pull — especially after momentum has already rolled over.

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Chart services courtesy of stockcharts.com. Annotations by James Taulman.