United States Steel Corp. X shares were trading higher in Monday’s session, potentially due to the Senate’s passage of a COVID-19 stimulus plan. The economic stimulus could raise the demand for industrial metals.
Technical Levels To Watch: The 15-minute chart above shows the chart is trading in a channel.
The stock has been trading in the range between $17 and $20. The stock bounced near the $17 level multiple times before rising to near $20.
Up near $20, the price has been unable to hold the levels and has fallen back to the $17 mark multiple times.
A bullish technical trader may view $20 level as a level of resistance and $17 as a level of support.
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A bullish technical trader may like to see the stock break above the $20 level and consolidate for a period before a further upward move.
A bearish technical trader may like to see the stock fall through the support level and consolidate below before a further move lower.
The daily chart above shows a strong potential support level near $16. The price has been unable to cross below this threshold for an extended period of time.
A potential resistance may be found near $20, as the price has been unable to cross above this level in the past. Another potential key level above $20 is the high of the daily chart at $24.71.
This is near a psychological level of $25 and this may also be an area of resistance.
A bullish technical trader may like to see the price cross the resistance level, with consolidation before another upward move.
A bearish trader may like to see a strong close below the $16 level for a potential head-and-shoulders pattern.
U.S. Steel is trading with a market cap of $4.6 billion.
X Price Action: U.S. Steel shares gained 13.73% in Monday's session, closing at $20.62.
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