Don’t Trust U.S. Steel’s Rally

by Sam Collins | June 25, 2012 1:22 am

United States Steel Corp. (NYSE:X[1]) — This steel manufacturer is one of the largest integrated steel flat-roll producers in Central Europe. It is dependent upon a strong world economy for success, but recent economic reports predict a global slowdown.

We have been bearish on the stock since March when it double-topped at $32. After that, the stock broke down from support at $24.50, and then flashed a death cross signaling that the long-term bear market would continue.

This month, X rallied, but the rally is shallow and appears to be nothing more than a bear flag with support at about $19. The stochastic issued a new sell signal on Friday. The target for X is in the mid-teens. Sell at the market.

Click to Enlarge

Source URL: http://investorplace.com/2012/06/trade-of-the-day-united-states-steel-corp-nyse-x-2/
Short URL: http://investorplace.com/?p=187706

---