Earlier this week U.S. Steel printed a new 2018 low after dropping nearly 50% from the March peak.  Since its last earnings release(8/2)alone shares have fallen over 30%.  This steep decline has pushed $X down to a major support zone near its 40 week moving average($24.65).  Heading into tonight’s Q3 earnings release the stock has rebounded nicely.  Is a major low in place?  We’ll know very soon. 

Some highlights: 

$X has been tracing out a divergent MACD low since mid August.

The stock’s SIR(short interest ratio)is quite low considering the big fall since the August 2nd breakdown.  The buyers that have lifted shares over the last two sessions are new longs, not forced buyers.

A close above $28.00 would be a major hurdle.  On the downside, a close back below $24.00 would be a clear warning sign. 

At time of publication we are long $X in most trading accounts.