US Steel Rips Higher And Approaches Resistance

United States Steel Corporation X shares shot higher Friday after the company announced better-than-expected third-quarter financial results. The company reported quarterly earnings of $5.36 per share, beating the estimate of $4.85 per share. The company reported quarterly revenue of $5.96 billion, beating the estimate of $5.79 billion.

United States Steel is trading up 14.16% at $26.69 at last check Friday at publication.

United States Steel Daily Chart Analysis

• The stock looked to have fallen below the higher low trendline but was able to recover above it. Now the stock trades in the pattern once again.
• The $30 price level is an area the stock had found resistance in the past and may continue to again in the future. The higher low trendline is an area where the stock has held as support and may continue to in the future.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bullish.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) has been pushing higher and now sits at 68. This nears the overbought range where the stock would see much more buying pressure than selling pressure.

See Also: Why United States Steel Shares Are Surging Today

What’s Next For United States Steel?

Bullish traders are looking for the stock to continue trading within the pattern and eventually go on to break above resistance. Bulls are then looking for the stock to hold above resistance and to possibly see more bullish moves in the future.

Bearish traders want to see the stock fall back below the higher low trendline once again. If the stock can hold below the higher low trendline, it may see a bearish push and a possible trend change in the future.

Photo: Courtesy U.S. Steel