U.S. Steel Shares Could Soon Fall to $15 — Or Lower

Image of construction steel rebarFrom Corey Rosenbloom: United States Steel Corporation (NYSE:X) shares are at a critical juncture, and any further weakness could see a huge 25% drop or more.

US Steel (X) surprised with a steeper retracement than expected, collapsing down from $28 to $21.

The $21.00 per share level proves to be a critical target (achieved) and is a key pivot support level.

Let’s study this level – why it’s important – and what the trade might be from here:

US Steel (X) is an uptrending “stronger getting stronger” stock that broke through resistance ($21.00) in July.

Price surged to the current high above $27.00 only to collapse back to the $21.00 support pivot.

Price shattered the rising 20 day EMA and now trades into the price pivot (blue) and 50 day EMA.

We’ll use this as a critical planning pivot, expecting a bounce up away from $21.00 to be a bullish support trade.

However, a sudden breakdown (continuation of the sell-swing without pausing) under $20.00 (give price a dollar of neutral resolution) could trigger an aggressive sell-swing eventually toward $15.00 per share (the prior low area).

Here’s the pattern as seen beautifully on the Weekly Chart:

What was magical about the $27.50/$28.00 level?

It was a key target – it’s the prior high level from early 2015 that served as a target once price broke through $20.00 per share’s resistance.

With this level successfully achieved, price fell sooner than expected back toward the $21.00/$20.00 level.

Once again, that’s where we’ll develop any new trades on the departure away from the $21.00 price level.

U.S. Steel shares fell $1.23 (-5.42%) to $21.45 in Friday afternoon trading. The largest steel producer in the U.S. has gained 168% year-to-date amid a recovery in steel prices.


This article is brought to you courtesy of AfraidToTrade.com.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Powered by WPeMatico