Shares of United States Steel Corporation (NYSE:X) are on the move higher today to the tune of 9%. The steel maker said its Canadian subsidiary filed for bankruptcy and also said Q3 earnings
are projected to be "significantly higher" than the consensus estimates. While this news is very good and obviously being received with cheers, the contrarian in me is looking in the opposite direction and is ready to short this name. United States Steel Corporation (NYSE:X) stock has raced higher by 100% in just 3 months! That is an astonishing move for any company, let alone a company with a multi-billion dollar market cap. With this big run in the stock, one has to start to think a lot of this news is getting priced into the share price and this push could be considered an exhaustion move. The level I have narrowed down as significant resistance is around $49. There are a few proprietary indicators right around that area, so this is where investors and traders can look to profit. Mark this level on your chart and get ready to make money on the short side.
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