US Steel (X)
US Steel (X) is a company that is considered part of the "Trump Trade". The Trump Trade basically stands for companies that stand to benefit from the President's policies and agenda. From what I have seen reported, infrastructure spending is a key component of his agenda.
Infrastructure spending could help boost companies that provide materials for infrastructure, like US Steel (X).
And when the President mandates that pipelines that he just re-opened up for completion are required to be built with steel produced in the USA, even better. US Steel and Mittal Steel stand to be the beneficiaries of those Presidential orders.
Some infrastructure stocks have already made significant gains. Let's review some charts for US Steel (X) and see how it stacks up to the competition.
US Steel (X) - 20 Year Chart
Today should provide for an interesting day considering US Steel (X) released its earnings yesterday after the close. Today's activity notwithstanding, let's try to forecast the share price going forward. It would probably be best to revisit this forecast in about 2 weeks after earnings activity is baked into the stock a little better. But let's start the review anyways.
This first chart is a 20 year monthly candlestick chart for US Steel (X). In December 2016, US Steel's share price developed a Shooting Star candlestick pattern. A Shooting Star candlestick pattern is a bearish reversal candlestick pattern.
If the Shooting Star candlestick patten is signaling temporary weakness, the supporting trendline could offer an opportunity to go long the stock and make a scale-in purchase. The supporting trendline currently sits around the $23 area.
The MACD Histogram on this monthly chart is showing increasing buying….
If you want to continue reading this article for US Steel (X), you must first login. I continue discussing its upside minimum trade that I would anticipate as well as pullback areas to make scale-in purchases for the current uptrend.
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