Shares of United States Steel Corporation (X) ended the trading session higher by $0.2 or 0.76% from its previous close. Price action formed what is considered to be a bullish engulfing candle that could very well signal a continuation of trend or reversal of the ongoing weakness.
United States Steel Corporation (X) is an integrated steel producer with production operations in North America and Europe. Its operations include coke production in both North America and Europe and iron ore pellets in North America. The company operates through three segments: Flat-rolled Products, U. S. Steel Europe, and Tubular Products.
United States Steel's recent stock range was formed by a trough where calculated support was defined at $26.90 and by a peak that established the resistance level at $29.25. This range could be used by traders managing their positions.
Traders wanting to establish a position in United States Steel or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk, as it shows where the bears were able to push the stock down, before the bulls step in with a bid.
The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short-term weakness seen on the stock.