Market Overview

Bull & Bear: United States Steel Corporation

Shares of United States Steel Corporation (NYSE: X) are trading higher on the session by 0.86%, at $42.18. With shares sliding lower seemingly every week, you have to wonder where they could head next…

Bulls: Bulls will note that United States Steel Corporation is approaching the $40.00 historical support level. This, coupled with the fact that shares are trading well below the 50-day and 200-day moving averages, should provide a degree of short covering and mean reversion.

Bulls will also note that X has seen an influx in call activity over the past two weeks.

A bullish trader could buy the August $43/46 call spread for a net debit of $1.08.

Bears: Bears will note that United States Steel Corporation has recently breeched the $48, $46, and $42 support levels, all of which were stronger indications of support that the $40 level. The next major level doesn't come into play until $37.50.

This could mean that shares could plummet another 11% without much support emerging. Bears will also note that the 20-day, 50-day, and 200-day moving averages are all downward-sloping.

A bearish trader could buy the July $42/39 put spread for a net debit of $0.95.

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 (24.3 million tons in North America and 7.4 million tons in Europe).

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