U.S. Steel Is Back From Trump’s Effect

U.S. Steel Is Back From Trump’s Effect

Trump told the paper the issue was still on the table, and reiterated his view that dumping is “a very unfair situation.” But he said a final decision may have to wait until other stalled initiatives, including health-care reform and tax reform and even infrastructure, are completed.

The comments sent other steel stocks into a downward spiral. AK Steel Holding Corp. AKS, -7.96%  shares slid 8%, Nucor Corp. shares NUE, -4.60%  tumbled 4.6% and ArcelorMittal Mittal SA ADRs MT, -1.49%  closed down 1.5%.

U.S. Steel shares X, +7.20% meanwhile, soared 7%, a vastly different move to the one seen after the company shocked investors in April with an unexpected first-quarter loss. That news sent the stock to its biggest one-day decline since it went public 26 years ago

Under Burrit’s leadership, the company posted net income of $261 million for the second quarter, or $1.48 a share, after a loss of $180 million, or $1.03 a share, in the year-earlier period.

Sales rose to $3.14 billion from $2.73 billion. Analysts surveyed by FactSet were expecting earnings of 36 cents a share on revenue of $2.98 billion. U.S. Steel expects full-year earnings of $1.70 a share, while analysts estimate earnings of 84 cents a share.

Technical Analysis

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 23.83.

The projected upper bound is: 28.09.

The projected lower bound is: 24.56.

The projected closing price is: 26.32.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 21 white candles and 28 black candles for a net of 7 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 66.6237. This is not an overbought or oversold reading. The last signal was a sell 7 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 72.38. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 44 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 233.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 51 period(s) ago.

Rex Takasugi – TD Profile

US STEEL CORP closed up 1.760 at 26.200. Volume was 127% above average (neutral) and Bollinger Bands were 35% narrower than normal.

Open     High      Low        Close     Volume
26.750  27.440   25.680  26.200  7,609,372

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 24.03 21.68 28.44
Volatility: 55 51 80
Volume: 3,178,922 3,108,737 3,384,746

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

US STEEL CORP gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
US STEEL CORP is currently 7.9% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of X.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on X.N and have had this outlook for the last 36 periods. Our momentum oscillator is currently indicating that X.N is currently in an overbought condition.

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Ivy Heffernan

Ivy Heffernan, student of Economics at Buckingham University. Junior Analyst at HeffX and experienced marketing director.

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