The X-factor Weighs On The Steel Sector
This morning, leading steel stock United States Steel Corporation (NYSE:X) is trading sharply lower after reporting quarterly results. The stock is trading down by $1.23 to $17.75 a share. The daily chart (for swing trades) is signaling support around the $17.00, and $16.30 levels, so further downside is likely in the near term. X stock will have intra-day support around the $17.35, and $16.90 levels where the day traders can take a quick scalp.
Some of the other leading steel stocks that are declining lower in sympathy to United States Steel Corp include AK Steel Holding Corporation (NYSE:AKS), Steel Dynamics, Inc. (NASDAQ:STLD), and Nucor Corporation (NYSE:NUE). It should be noted that a weak Chinese economy is certainly one of the reasons for a weaker steel sector. Traders that want to track and trade the action in the entire industry group can follow the Market Vectors Steel (ETF) (NYSEARCA:SLX).