Bull & Bear: United States Steel Corporation (X)

Shares of United States Steel Corporation

ended the session higher by 1.51%, trading at $45.67. With share hovering above $45.00, you have to wonder where they are heading next… Bulls: Bulls will note that the $45.00 is a significant support level and that the mere fact that shares have once again bounced off of the area is positive. Bulls will also note that X is trading well below the 50-day moving average (also technically oversold), which could lead to some short covering around this level. Bulls will also note that call volume has eclipsed put volume over the past week, which shows that traders are looking for near-term upside. A bullish trader could buy the June $47/50 call spread for a net debit of $0.75. Bears: Bears will note that United States Steel Corporation recently broke through the $51.00 level, which was major support. This has led to the 20-day, 50-day, and 200-day moving averages all ticking to the downside. This type of technical pattern indicates that shares will have massive resistance above current shares prices. Bears will also note that the company's most recent earnings loss was much greater than expected, despite higher selling prices and positive currency exchange; this is often a sign of bad management. A bearish trader could buy the July $45/41/38 put tree for a net debit of $0.96. United States Steel Corporation is an integrated steel producer of flat-rolled and tubular products with major production operations in North America and Europe. U. S. Steel has annual raw steel production capability of 31.7 million net tons (tons) (24.3 million tons in North America and 7.4 million tons in Europe). It is engaged in other business activities consisting primarily of transportation services (railroad and barge operations) and real estate operations. It has three segments: Flat-rolled Products, U. S. Steel Europe and Tubular Products.