United States Steel Corp. Poised for Upside on Obama Stimulus Plan
12/19/2008 10:40 am EST
United States Steel Corp. (X) - This producer of steel products operates through three segments: Flat-rolled Products, US Steel Europe, and Tubular Products. After a nasty drop from above $180 in June, it fell to $20 in November.
With expectations high for a major commitment to rebuild America's infrastructure by the Obama administration, X appears to have turned the corner.
By breaking through resistance at $40, the stock has completed a major pattern reversal with a target of $60-plus.
But the Stochastic indicator is overbought, so investors might want to take just a half position now and add to it on a pullback.
By Sam Collins of OptionsZone.com