Thursday, 23 February 2017

X - chop within a broader bullish trend

It was a rough day for US Steel (X) which saw some significant weakness, settling -7.8% at $37.31. With talk that President Trump's infrastructure bill might be delayed until 2018, the HFT algo-bots took an axe to many of the manufacturing/industrial stocks. For now, mid/long term trend remains bullish, with a monthly close >$40 due.

X, daily

X, monthly


Its very notable that despite today's smackdown, US Steel is still net higher for the month by a very powerful 14%.

Recent price structure was a giant bull flag.That was decisively confirmed with a move into the $41s. It would seem to be just a matter of when we'll see a monthly close above the key $40 thresold. Whether that is this month... March.. or not until the early summer, it shouldn't much matter to those long.

Technically, a monthly close >$40 will offer grander upside to $60.. whether by year end.. or early 2018.

The CEO Longhi met the President today... and boldly equated Trump with Eisenhower.

Trump will present the State of the Union next Tuesday, and that will likely highlight an intended 1 trillion dollar infrastructure bill.