U.S. Steel Stock at Cusp of Historic Breakout

United States Steel Corporation stock is testing long-term resistance for the fifth time, with a potential breakout signaling a significant change in character that could mark an exceptional buying opportunity. Patience is required because the test has already entered its second month, highlighting aggressive selling pressure after years of underperformance. An infrastructure spending bill or steel tariffs could provide the long-awaited catalyst for the overdue capitulation.

Technical traders routinely examine arithmetic charts to identify key support and resistance levels, but logarithmic charts often do a better job, especially when securities gyrate through hundreds of points, higher and lower. These charts use percentage change to draw trendlines rather than simple math, often revealing key infection points invisible to the majority of market participants. (To learn more, check out: What Is the Difference Between a Logarithmic Price Scale and a Linear One?)

U.S. Steel stock has been carving a sequence of lower highs since 2010 that roughly align with a logarithmic trendline, highlighting an intense resistance zone between the mid-$30s and mid-$40s. It has now returned to that zone for the fourth time, while buying interest has escalated to the highest level in seven years. This harmonic convergence could presage a major breakout that doubles the stock’s price in the coming months.

 

U,S. Steel has rallied back to a long-term trendline that could yield a major breakout in reaction to infrastructure legislation or steel tariffs. …read more

Read more here: U.S. Steel Stock at Cusp of Historic Breakout

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