September 6 Chart of the Day - US Steel

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This is a guest post by Darren Bush, ChartPros Sr. Trade Room Member

We have featured over 250 Charts of the Day since May 2023 and teach Price Action Trading for FREE  to traders who join our Highly Rated Trade Room.

US Steel Ticker: X   On the Monthly chart I color coordinated the segments to indicate their historical importance for the bulls and bears, and also with yellow to show the neutral point within the overall narrative.

Price has been moving backing and forth in a range for the last decade, with a failed attempt to break out late last year. 

Monthly Chart 

It has since been tumbling down and that tumble increased when recent reports stated that the Biden administration told Nippon Steel in a letter recent letter that its $14.9 billion acquisition of U.S. Steel would pose a national security risk by harming the American steel industry, leading some to believe the U.S. is poised to block it.

Weekly Chart

It came barreling down to test the midpoint of this range, right where the bullish trend and 50% retracement converge.Zooming in a bit to the weekly chart, you see the recent bounce at the bullish 50% retracement.

The question now is will we hold this level go higher to test important levels above, or will we keep tumbling to test even levels below? Notice the bearish fib target at 21.52. If this bearish fib holds to its target, we have confluence with the bullish 61.8. Traders will see this is a potential spot to flatten their shorts or to go long.

We don't know exactly what the future holds for the price of its shares, but if either of these bull or bear fibs fail to hold, we can zoom back out and anticipate deeper areas of interest within the overall range from the chart.

Only time will tell for sure what price will do next...

Armed with precision oriented charts like these both traders and investors can formulate their respective plans. 

So what's next?