US Steel X Falls to Critical Support Pivot Trade

Aug 12, 2016: 11:16 AM CST

US Steel (X) surprised with a steeper retracement than expected, collapsing down from $28 to $21.

The $21.00 per share level proves to be a critical target (achieved) and is a key pivot support level.

Let’s study this level – why it’s important – and what the trade might be from here:

US Steel (X) is an uptrending “stronger getting stronger” stock that broke through resistance ($21.00) in July.

Price surged to the current high above $27.00 only to collapse back to the $21.00 support pivot.

Price shattered the rising 20 day EMA and now trades into the price pivot (blue) and 50 day EMA.

We’ll use this as a critical planning pivot, expecting a bounce up away from $21.00 to be a bullish support trade.

However, a sudden breakdown (continuation of the sell-swing without pausing) under $20.00 (give price a dollar of neutral resolution) could trigger an aggressive sell-swing eventually toward $15.00 per share (the prior low area).

Here’s the pattern as seen beautifully on the Weekly Chart:

What was magical about the $27.50/$28.00 level?

It was a key target – it’s the prior high level from early 2015 that served as a target once price broke through $20.00 per share’s resistance.

With this level successfully achieved, price fell sooner than expected back toward the $21.00/$20.00 level.

Once again, that’s where we’ll develop any new trades on the departure away from the $21.00 price level.

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Corey Rosenbloom, CMT

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2 Responses to “US Steel X Falls to Critical Support Pivot Trade”

  1. United States Steel Corporation(NYSE:X): Sell-Off Approaching Critical Level | ETF DAILY NEWS Says:

    […] Corey Rosenbloom: United States Steel Corporation (NYSE:X) shares are at a critical juncture, and any further […]

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