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U.S. Steel (X) Stock Is Wednesday’s ‘Chart of the Day’
U.S. Steel (X) stock looks ready to break higher, according to TheStreet’s Chris Versace and Bob Lang.
By Kaya Yurieff
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NEW YORK (TheStreet) -- Shares of U.S. Steel (X) - Get Report are slipping 1.56% to $20.78 in early-afternoon trading Wednesday.
Yesterday, the stock climbed as steel prices in Shanghai spiked to a 10-week high.
The Pittsburgh-based company is an integrated steel producer.
TheStreet'sChris Versace and Bob Lang of Trifecta Stocks have identified U.S. Steel as the "Chart of the Day." Here is what Versace and Lang had to say about the stock:
U.S. 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 Nucor (NUE), AK Steel (AKS), Reliance Steel & Aluminum (RS), Carpenter Technology (CRS) are moving strong and to multi- month highs with X.
The moving average convergence divergence (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.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: X