A little financial district trivia -- many years ago, the corporate office of United States Steel (X) was around the corner from our Wall Street address, at 71 Broadway. Ron Howard used the location in one of his movies, and there still is a lot of stainless in the lobby. Check it out next time you are downtown. But for now, let's check out the strong charts of X this morning.
In this daily chart of X, above, we can see the rally in the price of X shares through Tuesday. Prices surged past $24 early this Wednesday morning. Prices are, and have been, above the rising, 50-day and 200-day moving averages.
The On-Balance-Volume line has been rising since March, and has made new highs along with prices. A rising OBV line tells us that buyers have traded more shares of X on days when it has closed higher. This tells me that buyers are being aggressive in their accumulation of shares -- buying in a rise instead of waiting for a dip. The momentum study is not showing a bearish divergence with the price action. Green lights.
You have to be impressed with how X came back from the single-digit basement. Prices are now above the rising 40-week moving average line. The weekly OBV line has been strong since early 2016. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish position above the zero line.
All that sounds good. Let's go back to the chart, again. Back in early 2015, prices found support on the way down, in the $24 to $27 area. This area could act as resistance on this advance. Traders who are long X from lower levels should consider raising their stop-loss orders to $20.