X - Steel producers hit hard

Whilst the main market saw a day of broad weakness, there was rather severe downside in the Steel producers. US Steel (X) settled -10.0% to $31.26. With a break of rising trend, and a bearish MACD cross (daily cycle), the near term outlook is bearish. The mid term outlook remains bullish, unless <$26.


X, daily

X, monthly

Summary

*note today's massive trading volume of 38 million, the highest since Nov'9th.
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Today's major drop in US Steel was something of a surprise, as just yesterday the stock was making a challenge to break above declining trend/resistance. By definition, yesterday is now a major failure, and we already have a decisive break of rising trend.

The 200dma is currently in the mid $27s, and is another 15% lower. The threat of further weakness is there, unless a break into the $35s.

Core support remains in the mid $26s. No price action <26 is expected within the near.. or mid term.