This is another trading session where the major stock indexes are starting the morning under selling pressure. Strange enough, the steel stocks are the only sign of strength during this opening hour of the trading session.
United States Steel Corp.(NYSE:X) is trading higher by 0.53 cents to $43.26 a share. The stock has been extremely weak on the daily chart trading below all of the major moving averages. Therefore, this early morning bounce in the stock could be short lived. Short term traders can watch for intra-day resistance around the $43.40 and $43.95 area.
AK Steel Holdings Corp.(NYSE:AKS) is another leading steel stock that is trading higher this morning by 0.30 to $14.98 a share. This stock actually made a short term low on May 17, 2011 at $14.33 a share. Therefore, this stock has better relative strength than United States Steel. Traders can watch for intra-day resistance around the $15.20, and $15.50 area.
Cliffs Natural Resources Inc.(NYSE:CLF) is trading higher this morning $1.10 to $86.26 a share. CLF is a leading producer of iron ore pellets which is used to make steel. This stock will have intra-day resistance around the $86.25, and $87.00 levels.