CHAP | Go Short, Then Go Long

CHAP took a shot to the guts with the gov’t announcing it
plans to drop the protective tariffs on steel. This high flyer
was overbought anyway, and now comes the piper wanting
his pay. My suggestion is that you should consider standing in
line with him to take your cut of the action. SHORT CHAP if
CHAP busts the $44.91 support. 1st target is the $43.00
support. 2nd target is $38.95 support. The golden target is
the $32.70 lower support area.

Please note that steel stocks are pretty volatile. They may
move $2 per day, up or down. CHAP has fairly strong resistance
at the $47.30 line. Watch the volume as indicative of strength
of any move.

Once CHAP fully retraces (I’ll be able to say more accurately
in the next few days I think), she will be a buy at support.
Right now the bias is bearish.