The $X your mum warns you about
Key Stats
Dividend Yield: 0.66% (Not exactly a retirement dream here)
Market Cap: 6.79B
Next Earnings Date: January 30, 2025
Technical Reasons for Decline
1️⃣ Head and Shoulders Breakdown: X recently completed a textbook head-and-shoulders pattern, breaking below $26.50 support with high volume. The next significant support zone sits near $22.00.
2️⃣ Bearish Moving Averages: The 50-day MA is crossing below the 200-day MA (death cross), often signaling more downside.
3️⃣ RSI Deterioration: Momentum is fading, with RSI hovering near 38, showing weak buying interest and no signs of a reversal.
Fundamental Reasons for Decline
1️⃣ Falling Steel Prices: Declining global steel demand due to slowing construction and manufacturing activity weighs heavily on X’s revenue projections.
2️⃣ CapEx Concerns: High capital expenditure commitments (2.5B planned for 2024) will pressure cash flow, especially in a downturn.
3️⃣ Macro Headwinds: The Federal Reserve’s hawkish stance and potential economic slowdown spell trouble for cyclical industries like steel.
Potential Paths to Profit
Option 1 (Low Risk): Sell short shares of X or use inverse ETFs if available.
Option 2 (Moderate Risk): Buy February 2025 $25 strike puts and aim for a 20%-100% profit.
Disclaimer: We are not a brokerage or investment firm. We do not offer financial advice or investment advice and/or signals. This is not certified financial education. We offer access to the daily thought process of an individual and his experiences. We do not offer refunds. All sales are final.
Please LIKE, FOLLOW, SHARE, and COMMENT if you enjoy this idea! Also share your ideas and charts in the comments section below! This is the best way to keep this signal relevant, keep the content free, and allow the idea to reach as many people as possible.
Dividend Yield: 0.66% (Not exactly a retirement dream here)
Market Cap: 6.79B
Next Earnings Date: January 30, 2025
Technical Reasons for Decline
1️⃣ Head and Shoulders Breakdown: X recently completed a textbook head-and-shoulders pattern, breaking below $26.50 support with high volume. The next significant support zone sits near $22.00.
2️⃣ Bearish Moving Averages: The 50-day MA is crossing below the 200-day MA (death cross), often signaling more downside.
3️⃣ RSI Deterioration: Momentum is fading, with RSI hovering near 38, showing weak buying interest and no signs of a reversal.
Fundamental Reasons for Decline
1️⃣ Falling Steel Prices: Declining global steel demand due to slowing construction and manufacturing activity weighs heavily on X’s revenue projections.
2️⃣ CapEx Concerns: High capital expenditure commitments (2.5B planned for 2024) will pressure cash flow, especially in a downturn.
3️⃣ Macro Headwinds: The Federal Reserve’s hawkish stance and potential economic slowdown spell trouble for cyclical industries like steel.
Potential Paths to Profit
Option 1 (Low Risk): Sell short shares of X or use inverse ETFs if available.
Option 2 (Moderate Risk): Buy February 2025 $25 strike puts and aim for a 20%-100% profit.
Disclaimer: We are not a brokerage or investment firm. We do not offer financial advice or investment advice and/or signals. This is not certified financial education. We offer access to the daily thought process of an individual and his experiences. We do not offer refunds. All sales are final.
Please LIKE, FOLLOW, SHARE, and COMMENT if you enjoy this idea! Also share your ideas and charts in the comments section below! This is the best way to keep this signal relevant, keep the content free, and allow the idea to reach as many people as possible.
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