United States Steel Explodes On Down Day
Despite a substantial drop in the overall markets, shares of United States Steel (NYSE: X) have jumped 4.2% to $21.23 in today's action on heavy volume (16.3 million shares today vs. 9.1 million daily average). The stock has gained 9% since hitting $19.36 in the opening minutes of Monday's session.
There may be a few reasons for the recent push. A rumor was published by Benzinga on Friday of last week regarding the possible acquisition of U.S. Steel by ArcelorMittal (NYSE: MT). Also, earlier today VTB Capital initiated coverage on US Steel with a buy rating and a price target of $28.60.
As the one year daily chart below shows, shares of U.S. Steel have been consolidating in a large range between $17.63 and $23.84 since mid May. The stock recently found strong support at the $19 level and appears to be ready to making another run at $23 resistance.
Should that level be broken, no resistance comes into play until $29.13. If shares fail to break $23 once again, however, look for a retest of that $19 support level and possibly a move below the 52-week low of $17.63.
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