This is a pure technical chart play on United States Steel Corporation (NYSE:X). The stock has fallen off a cliff as President Trump has gone soft on China. The worry is he will no longer tax steel imports as once promised. This monster fall in shares of United States Steel gives investors an ‘on sale’ opportunity to swing trade the stock.
The level to buy is $27.85, only pennies from the current price. The reasoning is simple. There is a former pivot high from July 29th, 2016 at $27.85 as well as the daily 200 moving average. When two levels coincide, the level because much firmer and more likely to see a strong bounce. The expected swing trade bounce would be approximately 10% over the course of a week or so.
Remember, swing trades are not long term investments, they are trades you take for a week or a few weeks, looking to catch near-term moves. Let’s see if United States Steel Corp hits the buy level…