Thursday, 1 February 2018

X - selling lower on good earnings

US Steel saw good earnings, but still settled lower for a third consecutive day, -2.1% at $36.61. S/t outlook is bearish to the 50dma around $35.00. The m/t outlook is hyper bullish to $60 (with intermediate psy' $50), based on an FPE in the 9s, within a broadly accelerating US/world economy.

X daily

X monthly



Especially useful is the presentation:

Suffice to add, earnings were good, and the outlook is outright superb. With annual EPS set to be around $3.80, that brings the FPE down to the 9s.

Considering the accelerating US/world economy (at least into mid 2019), the outlook for US Steel is very positive.

Technically, the stock did notably fail to break AND hold above multi-year resistance in January. On balance, it should manage this in Feb' or March. Any monthly close >$40 will offer a grander run to (at least $60) within 9-18 months.

The hyper bulls (sp'4-5K) could start to target 100/115 in late 2019/2020.