United States Steel Corporation shares have rocketed higher in the past month, gaining 50% in a vertical impulse underpinned by steel tariff threats and upcoming infrastructure legislation. The rally broke a seven-year trendline, offering a stiff tailwind that sets the stage for even stronger upside in the coming months. Daily and weekly relative strength oscillators are not pinned to overbought levels, suggesting that sidelined players can open positions near recent highs and not violate conservative risk management strategies.
Strong Congressional resistance to steel tariffs put a floor under major averages on Monday, but the stock held up well because the stage is set for stronger revenue and profits even if President Trump reverses course. However, U.S. Steel’s volatility is likely to escalate as the two sides butt heads, testing the resolve of newly minted shareholders. Look for dip buyers to come to the rescue if that happens, keeping a price floor near $40. (See also: Which Stocks Will Win or Lose From Steel, Aluminum Tariffs?)
U.S Steel stock has rocketed to a three-year high in recent weeks but could add to gains, potentially lifting into the low $60s. …read more
Read more here: Still Time to Buy U.S. Steel Stock