Trump Torpedoes US Steel Deal, X Stock Tumbles Despite Bullish Chart

United States Steel Corp X has been red-hot until the morning of April 10. After a powerful run, shares are taking a hit in premarket trading, down 10.04% as of 7:55 AM Eastern Time. The culprit? President Donald Trump's latest curveball on the Nippon Steel deal.

X stock had soared 38.47% year-to-date, 28.46% in the past month and 10.64% this week.

But that rally now faces a rude interruption, thanks to Trump’s sudden declaration: "We don't want to see it go to Japan."

Read More: US Steel Stock Tumbles As Trump Says ‘We Don’t Want To See It Go To Japan’

Get Started

Start Futures Trading Fast — with a $200 Bonus

Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection.

Get Started

Bullish Momentum Meets Political Whiplash

Trump's comment directly undercuts hopes that Nippon's $14 billion bid for U.S. Steel might finally move forward, reported Reuters. That's despite Trump himself directing a national security panel just two days earlier to give the deal another look. White House officials, meanwhile, offered little clarity: "Everything's always on the table with the president."

Investors, understandably, are spooked.

X stock fell to $39.77 in premarket trading – well below Nippon's $55-per-share offer and a sharp reversal from recent highs.

Chart created using Benzinga Pro

X Stock Technicals Remain Strong, For Now

Despite the dip, the technical setup remains bullish for now. X stock, $45.14 (as of the last close), is comfortably above the eight-day simple moving average of $42.58, the 20-day at $42.02, and the 50-day at $39.52. Even the 200-day simple moving average of $37.78 has been left behind.

The Moving Average Convergence Divergence (MACD) indicator is at 1.37, and the Relative Strength Index is at a robust 63.85—both suggesting recent buying strength.

Will The Deal Collapse Or Just The Rally?

Political interference has haunted this deal from the beginning. After former President Joe Biden blocked the merger in January, the companies sued the Committee on Foreign Investment in the United States (CFIUS), alleging unfair treatment.

A temporary truce emerged last month as all parties agreed to pause litigation and re-review the proposal.

But Trump's latest remarks could derail that detente and the stock rally along with it. For now, technicals say bullish. But price action this morning is saying: buckle up.

Read Next:

• Cramer Praises Trump For Pushback On Nippon ‘Dumper’ Steel, Calls The Block A ‘Smart Move’

Photo: Shutterstock