Trends are close to everything, and technical analysis is the sum of all expectations, dreams and hopes. If you understand some technical analysis you can reduce your losses and narrow down the best exit and entry points. Nothing is random, and for us it is all about probabilities as we scan the entire market.
SHORT TERM COMMENTARY: United States Steel Corp. [Monday 11 Dec. 2017]:
Buy Candidate ( 6.08)
United States Steel Corp. is up by 0.72% yesterday from USD 31.95 to USD 33.20 , and has now gained 5 days in a row. It will be exciting to see if it manages to continue the gaining strike or take a minor break for the next few days. In the last 10 days the price of United States Steel Corp. has been rising in a total of 9 out of 10 days, and is up by 17% over the past 2 weeks. Volume fell last day by -0,77 million shares and in total there was bought and sold 9,20 million shares for approx. USD 305,48 million. You should note that falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days.
3 MONTH TREND
United States Steel Corp. has broken the wide and strong rising short term trend up and even stronger raising rate are indicated. On reaction back there will be support on the roof on the current trend broken, which is USD 31.36, a level that may pose a second chance to hit a runner. According to fan-theory USD 35.37 will be next possible trendtop level and thereby pose a resistancelevel which may not be broken on first attempt.
Only positive signals in the chart today. United States Steel Corp. holds buy signals from both short- and long term moving averages, but the stock has a general sellsignal from the relation between the two signals where the long term average is above the short term average. On corrections down there will be some support from the lines at USD 0.00 and USD 26.29. A break down bellow any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point at Tue. 14 November 2017 and this indicates further gains until a new top pivot has been found. Volume fell last trading day despite gaining prices. This causes a divergence between volume and price and may be an early warning. The stock should be watched closly.
RELATIVE STRENGHT INDEX (RSI)
RSI14 is 90 and the stock is extremely overbought on RSI14, but may as well continue to gain. Some stocks do their best performance while being overbought, but it is very seldom RSI remains so high for a long time without short corrections. Risk has therefore increased and larger daily movements can be expected for the next couple of days.
SUPPORT AND RESISTANCE
United States Steel Corp. finds support from accumulated volume at USD 27.38, USD 27.30 and USD 25.19 There is no resistance from accumulated volume above today's level and given the right condition the stock may perform very well in the next couple of days.
This stock may move much during a day (volatility) and with a large prediction interval from the Bollingers Bond this stock is considered to be "high risk". Last day they the stock moved USD 1.13 between high and low and this equals 3.40%. For the last week the stock has had an daily average volatility of 4.03%.
The stock is very overbought on RSI14 (90). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very little as the stock will find support at the trend broken.
Several short term signals along with are positive, and the stock has broken the rising trend up which indicates even stronger rising rate and we conclude that current level may hold a buying opportunity as there is a fair chance for this stock to perform well in the short term.
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