Trading Idea: Is United States Steel close to Support?

Published on Wednesday, 03 October 2012 06:56 Written by TradersHuddle Wire

New York, October 3rd (TradersHuddle.com) - Shares of United States Steel Corporation (NYSE:X) ended the trading session close to calculated support at $18.78, a level that will raise the attention of traders looking for an entry point.

United States Steel's stock range is defined by its calculated support defined at $18.78 and by the resistance level at $23.31. This range could be used as a reference by traders planning their next move. The area where buyer interest might materialize is defined as calculated support. Stocks trading near support might see upside if it can successfully hold the technical level. However, this area if breached will signal participants that the stock failed to entice buyers to step in to support it.

Traders wanting to establish a position should pay close attention to United States Steel's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $23.31 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

Shares of United States Steel Corporation closed at $18.99 in the prior trading session.

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.