US Steel Stock Smashes 20-Year Barrier On 'Trump Pump' - United States Steel (NYSE:X)

US Steel Stock Smashes 20-Year Barrier On 'Trump Pump,' Yet Questions Remain

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.
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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.

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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.

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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