United States Steel Corp. (NYSE:X) — This manufacturer of steel plate, tubular products, etc., is dependent upon a strong world economy for its success. It is one of the largest integrated steel flat-roll producers in Central Europe.
On March 2, with the stock at $27.50, I said, “Technically a channel rally that began in October failed to penetrate its bearish resistance line in February. That failure drove the stock below its 50-day moving average and threatens to break it below the channel’s support line at $27.”
Instead of breaking lower, X rallied to above $30, then reversed and violated its 50-day moving average.
Those who sold or shorted should hold their bearish positions since the double-top and heavy selling are telling us that the stock could fall to the mid-teens.