Zinger Key Points
- U.S. Steel breaks out of 20-year base after Trump’s “partnership” pitch with Nippon Steel.
- Analyst flags uncertainty over deal’s structure, despite strong technical breakout and bullish chart signals.
- Get the Strategy to Trade Pre-Fed Setups and Post-Fed Swings—Live With Chris Capre on Wednesday, June 11.
It took one sentence from President Donald Trump to jolt United States Steel Corp X out of a 20-year barrier.
"This 20yr base in US Steel just needed a little Trump pump," posted All Star Charts strategist Steven Strazza on X, capturing the chart-watching community's excitement.
Trump's Pitch Sparks A Chart-Breaking Rally
The stock surged more than 21% after the president announced a "planned partnership" between U.S. Steel and Japan's Nippon Steel, pledging the company would stay American, headquartered in Pittsburgh, and promising 70,000 jobs and $14 billion in U.S. investment.
Related: President Trump Approves US Steel, Nippon Steel Partnership
Chart created using Benzinga Pro
Technically, the breakout is hard to miss. U.S. Steel stock is trading far above its eight, 20, 50, and 200-day simple moving averages (SMAs), with the eight-day average sitting at $42.87 and the stock now at $52.01.
The RSI (relative strength index) of 76.02 suggests the stock is overbought, while the MACD (moving average convergence/divergence indicator) reading of 0.85 points to bullish momentum.
Traders are seeing textbook confirmation of a bullish breakout.
Analyst Skepticism Clouds Deal Optimism
But not everyone is convinced the rally is built on solid footing. JPMorgan analyst Bill Peterson maintained a "Neutral" stance, stating "questions remain" over the deal's structure and execution.
While some media outlets have reported that Trump approved Nippon Steel's acquisition, subsequent statements from the president painted a murkier picture. He’s described the deal as an "investment" or "partial ownership" rather than a full takeover. "It will be controlled by the United States. Otherwise, I wouldn't make the deal," Trump said.
Peterson noted that the newly announced $14 billion investment figure is far above the previously suggested $2.7 billion, raising questions about how—and whether—that capital would be deployed in just over a year. Nippon Steel's Vice Chairman reiterated the company's intent for a full buyout as recently as May 20, saying there would be "no free technology" in a joint venture structure.
Steel Rivals Sink As U.S. Steel Soars
Market reaction among peers painted a telling picture: while U.S. Steel soared, rivals like Nucor Corp NUE, Steel Dynamics Inc STLD and Cleveland-Cliffs Inc CLF declined – suggesting the market expects a more competitive steel landscape if the deal materializes.
For now, U.S. Steel bulls are riding the momentum, but whether this Trump-fueled breakout has structural legs will depend on how the fog around the deal clears—or doesn't—in the days ahead.
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