United States Steel Corporation (NYSE:X) shares are trading higher Thursday after the company announced it will invest approximately $60 million to insource pig iron capabilities at its Gary Works facility as part of its metallics strategy.
The stock has been pushing higher and is attempting to break above an area of technical resistance on the chart.
U.S. Steel was up 6.87% at $30.31 Thursday at market close.
U.S. Steel Daily Chart Analysis
- The stock is trading in what traders call an ascending triangle pattern and is at resistance in the pattern. The $30 level has been resistance in the past for the stock as it has struggled to cross above the price level. The next few days will be key to see if the stock sees a breakout or gets rejected at the resistance level again.
- The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bullish sentiment, and each of these moving averages may hold as an area of support in the future.
- The Relative Strength Index (RSI) has been flying higher the past few weeks and sits at 78. This is well into the overbought range and is showing that the stock is seeing much more buying pressure than selling pressure. An RSI this high is likely to turn around soon, but if it can stay in this area the price will likely continue to rise.
What’s Next For U.S. Steel?
The stock has been on a tear lately and went from support to resistance in just six days, an increase of more than 35%. The stock is showing strength throughout the last few weeks and hasn't shown signs of slowing down.
Bullish traders are looking to see the stock cross above the resistance level and be able to consolidate above the $30 level. If this level can become an area of support, the stock may have a further bullish push in the future. Bearish traders are looking for the stock to get rejected at the resistance level and start falling back toward the higher low trendline, eventually looking to break below the trendline.
Photo: Courtesy U.S. Steel
