Corey Rosenbloom: From the lows of early 2016, United States Steel Corporation (NYSE:X) doubled with a huge price surge and trend reversal.
Let’s chart the reversal and note the key target achieved this week – and plan from there.
Similar to Crude Oil, US Steel was in a persistent, strong downtrend into early 2016.
A huge positive momentum divergence built under price, setting the stage for the February reversal.
Price finally broke above the falling 50 day EMA in late February and then surged above it with an enormous short-squeeze and breakout buying opportunity here in March.
The initial target – once price surges above the falling 50 day EMA – is the falling 200 day SMA.
Price achieved this level and retraced initially from it this week, which brings us to our current planning.
US Steel (X) would be a continuation trend reversal BUY above the $13.50 and $14.00 per share level.
Otherwise, we’re cautious after the strong surge into resistance beneath $13.50 per share.
This will likely be a Bull/Bear Battle Zone, so be ready to trade the departure from this level.
Here’s the top-level perspective from the Weekly Chart:
Similarly, price surged and reversed off a lengthy positive momentum divergence.