Thursday, 20 April 2017

X - Steel producers at the Whitehouse

Whilst the main market saw moderate gains, there was very significant upside amongst the Steel producers. US Steel (X) settled higher by a powerful 7.3% to $30.51. Things turn more bullish with a break back over the 50dma, which in May will be around soft resistance of $34.00.

X, daily

X, monthly


The Steel producers were the centre of attention today, as they were once again at the Whitehouse, as President Trump signed another exec' order.


Well... maybe Trump didn't exactly write a giant X... but that screenie was too tempting not to edit.

US Steel's CEO Longhi continues to catch media attention...

Longhi seems a pretty reasonable guy, and I hope he stays with US Steel for the long term.

So, what about the stock?

X has had a really rough time since the late Feb' high of $41.83. The stock has come very close to the 200dma in the $27s... but its held... just.

First soft upside target is around $34, where the 50dma will be lurking in May. The grander issue is whether X can manage a monthly close above the $40 threshold, which has been resistance for much of the past ten years.

Lets be clear, a monthly close >$40 will offer grander upside to $60, and right now, that is double the current price. I admit thats an exceptionally bold target, and for the 'conservative bullish chasers' out there, they'll wait for such a monthly close.