This is a US Steel (X) stock chart update. US Steel (X) was discussed on CNBC’s Fast Money tonight, so I figured why not look at its chart and pullback.

US Steel (X) – Bullish Impulse Wave Pattern

This is a 1 year daily candlestick chart to start off the US Steel (X) stock chart update. The preferred purchase area appears to be around the $31 price level. The MACD Histogram is showing selling momentum that is still increasing. That typically leads to lower prices.

US Steel’s share price broke above the resistance area from the Bearish Counter-Attack candlestick pattern by developing a Bullish Impulse wave pattern. The correction for the Bullish Impulse wave pattern should take X’s share price back to the $34 – $35 area. This is the area around the 100% Target Line from the Fibonacci Extension Tool as well as the area near the top of Wave 1 – a common area where a Bullish Impulse wave pattern corrects to.

Analyzing Support Areas on a 1 Year Daily Candlestick Chart for US Steel (X) For Its Current Pullback

If X’s share price bounces from the 100% Target Line of the Fibonacci Extension Tool the $34.66 area, it is most likely heading towards a new high around the $46 – $50 area.

However, if the $35 area does not provide support, the $30 area is the next stop below. A trip to the $30 area also indicates that X is correcting a larger pattern. Upside potential will be limited to the area around the previous high of $41.83.

So the depth of this pullback will help determine the height of the next uptrend.

X – Moving Averages

This is the same 1 year daily chart, but from a moving average perspective. This US Steel (X) stock chart shows that its share price is sitting right on its 50 Day moving average.

Moving Average Analysis for a 1Year Daily US Steel (X) Stock Chart

With the MACD Histogram still showing increasing selling momentum, the probability of the 50 Day moving average holding does not look good. A breach of the 50 Day moving average and the $31 area is probable.

As long as X’s selling volume is not increasing as it approaches the $31 support area, it should not continue towards the 200 Day support. However with any pullback, it is always important to look for reversal indicators before just “purchasing shares” at a pullback zone.

US Steel (X) – Summary

Monitor a daily US Steel (X) stock chart and its MACD Histogram for a reversal. Look for support first around the $35 area. If the $35 support fails, the next scale-in purchase area is the $31 range. Waiting for 2 consecutive days of decreasing selling momentum will be an indicator that the bottom may be in. Whether its the $31 or the $35 range, make sure the MACD Histogram confirms the reversal.

After a reversal has taken place, feel free to stop by the Idea Chamber and ask for an upside price target calculation!

Good luck trading!