US Steel Stock Moves Closer To Resistance In Bullish Pattern

US Steel Stock Moves Closer To Resistance In Bullish Pattern

United States Steel Corp. X shares were trading higher Friday.

The company reported second-quarter earnings and sales beat Thursday. Here's a look at the technical levels for the stock. 

U.S. Steel was up 2.71% at $26.16 at the last check.

(Click on image to enlarge)

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US Steel Daily Chart Analysis

  • The stock looks to have traded in what technical traders call an ascending triangle pattern since April 2021.
  • The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment in the stock has been bearish.
  • Each of these moving averages may hold as an area of resistance.
  • The $30 level has held as resistance a few times in the past and the price has struggled to cross above it. The higher low trendline has acted as support and is building up to the resistance.
  • The Relative Strength Index (RSI) started moving higher the past couple of weeks and now sits at 62. This means there have been more buyers moving into the stock recently. 

What’s Next For US Steel?

Bullish traders are looking to see the stock hold above the higher low trendline and continue to form higher lows until the stock can see a breakout.

Bearish traders would like to see the stock fall below the higher low trendline and be able to hold below it. This could let the stock see a further bearish push.

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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