Since the election, it has been popular to talk about global reflation taking place. Many look at the price of stocks, Copper and Steel and feel the rise in prices, means global growth and reflation is taking place.
Below looks at the price of US Steel over the past few years and the message it could be sending to the reflation theme of late-
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US Steel (X) retraced 50% of its 2010/2016 decline and hit falling resistance line (1) at (2). At the same time it was hitting dual resistance at (2), it was at the apex of a bearish rising wedge pattern.
After hitting this resistance, it has backed off over 10%, breaking support of the bearish rising wedge.
The reflation theme has been popular around the world. For the them to continue, it does NOT want to see weakness at (2)~