United States Steel Closing in to Resistance

Published on Wednesday, 08 February 2012 06:20 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of United States Steel Corporation (NYSE:X) are trading very close to calculated resistance at $32.52 with the current price action closing at just $31.72 placing the stock near levels that make it difficult to buy.

United States Steel Corporation (NYSE:X) is an integrated steel producer with production operations in North America and Europe. Its operations include coke production in both North America and Europe and iron ore pellets in North America. The company operates through three segments: Flat-rolled Products, U. S. Steel Europe, and Tubular Products.

United States Steel's current stock range is defined by current calculated support defined at $26.94 and by the resistance level at $32.52, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for United States Steel, as the stock is well above support, however, as the stock pulls back towards $26.94 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $32.52 then traders will get an opportunity to enter United States Steel stock by establishing a position as the stock moves to a higher range.