US Steel has been on a rollercoaster ride this year but may suddenly be looking at higher prices on the back half of 2016.  The dismal performance to start the year took this name down to the depths, multi-year lows in the single digits.  After recovering with the market in March/April X has consolidated nicely, put in a series of higher lows on the chart and looks ready to break higher.

It helps when a commodity group is moving with other names, and that is the case with the Steel Group.  Others like NUE, AKS, RS, CRS are moving strong and to multi month highs with X.  The MACD for X has just confirmed a bull signal and we like the slope of the relative strength.  The steep uptrend line is still intact and a move over 21 on good turnover is going to be a positive development.

 

Watch the Video here.

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