Thursday, 21 September 2017

X - settling under the 50dma

Whilst the main market saw a day of weak chop, there was very significant weakness in US Steel (X), which saw an intra low of $24.32, and settling -4.4% at $24.66. The daily close was 10 cents under the 50dma, the most bearish close since June 27th.

X daily

X monthly


Suffice to add, short term bearish.... mid/long term bullish.

If you believe the main market will see a 4-5% correction, then considering we have already seen a daily close under the 50dma, its hard to see rising trend - from mid May, not also breaking. That threshold is currently around $24.00. In theory.... the most bearish case are the sp'2400/2390s... with X around $21.00.

US Steel is unquestionably a good company, and unless you think the US/world economy is set to see a recession within 3-6 months, it is a stock for the mid/long term.