Sorry I meant $20 not $12
X - United states steel - Page 74
If we look at a 6 month chart of US Steel we can easily recognize that we formed a Double Bottom reversal. With the first trend line forming at the end of May 2012 we first created the first W bottom around June 12, 2012. Then formed another peak around the beginning of July 2012. We failed to break the trend line and went back down to create the other bottom around July 25th 2012.
We finally broke through the trend line on around July 31th, 2012 and often, after price penetrates the confirmation line, price will retrace for a short time, sometimes back to the confirmation line. This retracement offers a second chance to get into US Steel (X) for a long position. Another sign we must watch for is the Volume which we seen explode when it broke the trend line around July 31th, 2012.
This gives us strong confirmation that the trend has reversed and you either should close out your short positions or enter into a long position. US Steel will give the support line of $20.80 a retest before exploding higher. Remember people lie...CHARTS DON'T!!!
If you take a look at the chart you can easily see a few key points here for US Steel.
1. The triple bottom is almost complete with a bounce off the $18 level which would serve as either support and the attempt to break through and continue downwards is not completed which would indicate that US Steel has formed the final triple bottom.
2. If we seem to puncture through the $22 resistance level we would be having a falling wedge REVERSAL which we have technically been in since Feb, 2011 or if we choose to retrace further June, 2008 we can use as reference. This is pretty huge actually since it would be the first time we actually have moved out of the channel since 2011.
3. The CCI/MA crossover is showing a reversal as well so we can use this as a first buying point but as always until I see a break through of the resistance of $22 we can confirm this 100%.
Sentiment: Strong Buy
That right there is my question as well. Market has been taking off the past week and its only a matter of time. Ill ride it for as long as possible though.
I'm thinking it might be good for a month or so before a pullback .
Probably beat earnings huge this next time around.
It didn't do bad at all last earnings and had a nice jump.
United States Steel Corp.
The big news that China is investing 150 billion in infrastructure coupled with the moves by the ECB and the Fed sparked a rally in the basic materials sector. The five basic materials stocks covered in this article are spiking higher recently on the developments.
Subsequently, many names in the sector have pulled back after AK Steel (AKS) and U.S. Steel (X) received downgrades by JPMorgan. JPMorgan stated the recent pop in these stocks was due to short covering and it doesn't think steel fundamentals will support a continued move higher.
The question is if they don't think these stocks can move higher then why are the price targets still vastly higher than current prices? Their new price targets for AK Steel and U.S. Steel are $7.00 and $29.00 respectively. This implies AK Steel still has 27% upside and U.S. Steel has 39% upside. The downgrades don't make sense to me.
I see the pull backs as a buying opportunity. The conspiracy theorist in me would say it seems like shorts try to keep certain names down until they are able to unwind their positions and go long. A lot of people were talking about the downgrades but no one really mentioned the fact that the target prices still provide significant upside. Even so, there may be other complications that may hinder some of these stocks performances going forward.
The company is trading 35% below its 52-week high and has 36% potential upside based on the analysts' consensus mean target price of $28.36 for the company. US Steel was trading Tuesday for $20.62, down over 3% for the day.
Fundamentally, US Steel has some positives. The company has a forward P/E of 7.81. US Steel is trading for 87% of book value. EPS next year is expected to rise by 77%. Insider ownership is up 27% over the past six months and the company pays a dividend of around 1%.
Technically, the stock failed at its first attempt to achieve a double bottom reversal pattern. The stock tested resistance at the $18 level twice over the past two months and needs to soar higher than the peak of $23 between the two troughs at $18 to fulfill the pattern.
The company is down almost seven-fold from its 2008 high of $180. The stock's recent pullback was related to the downgrade by JPMorgan. I see this as a chance to get into the stock before things start to turn around. The stock is a buy here.
Sentiment: Strong Buy