The rally in United States Steel Corporation (NYSE:X) may continue. The shares are rebounding off of an important price level.
There is support at $29.
This support, or large amount of buy interest, is a result of seller’s remorse. A large number of investors sold U.S. Steel at or close to $29 last summer. But then the shares blew through this level and traded higher.
When this happened, many of these remorseful sellers decide to buy their shares back. But they will only do so if they can get them for the same price they sold them at.
As a result, there was a large number of buy orders placed around $29. This turned what was a resistance level into a support level. And after falling to it, U.S. Steel rebounded and is moving higher.
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Photo: Courtesy U.S. Steel
