Steel Stocks Break Out: X, NUE, AKS

Steel stocks are surging today on the back of renewed optimism for the global economy. China’s inflation numbers overnight, showed signs that may halt the governments need to raise interest rates so aggressively. This is bullish for growth expectations in China. With growth comes commodity price increases. United States Steel Corporation (NYSE:X), Nucor Corporation (NYSE:NUE) and AK Steel Holding Corporation (NYSE:AKS) are all spiking higher. U.S. Steel is trading at $62.72, +2.37 (+3.93%).

Solid gains across the sector have broken key resistance levels on many steel stocks. Namely, U.S. Steel has broken out above the $61.00 level. The stock has been hammering on this level since the start of January. The gap higher today looks to have broken the barrier. The next major resistance level on U.S. Steel is at $66.40, followed by a major double top at $70.50. Both levels are now a possibility in the not too distant future. At this point, shorts on the stock would be foolish though longs must be very careful. The key would be to wait for consolidation to buy and then once the resistance levels hit, short.

About Gareth Soloway 168 Articles

Affiliation: InTheMoneyStocks.com

Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form InTheMoneyStocks.com. Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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