Ternium (TX)

By JC Parets Thu, Aug 5, 2021

Short and intermediate term trends have been extremely sloppy recently, which has us zooming out looking for primary trends.

One area we’ve seen strength in is base metals — particularly in steel. 

And one steel stock in particular that we like is Ternium (TX).

This midcap stock from Luxembourg looks set to become a large cap stock shortly if it can break out past its former highs from a decade ago.

The level we’re eyeing there is 46.

Below 46 we are just watching.

But if it breaks that former high, we’re riding this stock up with a target of 71.

Great risk to reward ratio skewed in our favor as always.

Til next week, good trading,

JC Parets

About the Author

JC Parets, founder of All Star Charts, specializes in finding the most opportunistic risk vs. reward propositions while at the same time bringing a top/down approach to the marketplace whose wide spectrum is rivaled by few. JC begins with a long-term global macro perspective and then works his way down to the individual sector and industry level before ultimately isolating the stocks that best portray a particular thesis. Price is the most important technical indicator, but JC uses supplements such as Momentum, Relative Strength, and Fibonacci analysis to complete the process.