US Steel (X) gapped higher on Monday morning, up around $1.20 to $44.72 which is a 2.5% increase but up as high as 4% earlier in the session.

The news pushing X higher is the steel and aluminum import tariffs proposed last week by the US Department of Commerce. President Donald Trump is considering the strictest measure, which is a 24% tax on steel imported from any country globally.

While investors believe the tariff will be a net positive for companies such as US Steel, some in the car and machinery industries may get hurt. Other negative effects to consider are higher inflation and possible retaliation from countries such as China.

Our analysis of X’s market cycles shows that the stock may be hitting an upside target zone, likely to bring a top soon. Our projection is for a correction to the $40.44 level. The market cycles are designated by the black semicircles at the bottom of the chart.

US Steel (X) Chart with Weekly Bars

(Click on image to enlarge)