United States Steel Corporation (NYSE: X) Is Set to Benefit from Trump’s Policies

United States Steel Corporation (NYSE: X) is among major US steel makers that are set to benefit from a recent US Department of Commerce report submitted to the Trump administration regarding the state of the US steel industry. Some of the recommendations in the report include the important role that the US steel industry plays in the country’s national security agenda.

The United States is currently the biggest importer of steel and steel products given that many steel companies have closed their manufacturing facilities in the country even as demand for steel products has been rising. The US currently relies heavily on steel imports from China and given the trade tensions between China and the US, the Trump administration is reevaluating the trade relationship between the two countries.

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Our technical analysis of the stock reveals that the company reported lower revenues in Q4 2017 as compared to Q3 2017, but this is likely to change in upcoming quarters, especially if President Trump approves the implementation of the DoC recommendations. The steel maker is set to benefit from the implementation of protectionist policies by the Trump administration in order to safeguard and revive the steel industry.

The company’s quarterly growth has been relatively steady since Q2 2016 with a major spike in Q2 2017, but this is likely to change in future quarters. The company’s projected future quarterly growth was pegged at a slightly higher level, but this was before the DoC report.

President Trump is likely to impose massive tariffs on steel imports in an effort to fulfil his campaign promise of reviving American manufacturing industries. Most voters in the steel belt voted for Trump based on his campaign promise to revive the steel industry and it is highly unlikely that he will not honor his campaign promise.

The company’s revenues have been rising steadily since Q1 2016 and are likely to spike much higher once Trump approves the DoC recommendations.

Based on the technical data and associated charts at the time this article was written, Stock Traders Daily has provided detailed trading plans, with integrated risk controls, to its clients. These plans will change in real time as prices move. To receive an update or to review the detailed trading plans associated with this data please review our Real Time Trading Report for US Steel.

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Technical Summary

Term →Near Mid Long
Bias Weak Strong Strong
P1 40.34 37.25 35.18
P2 42.26 43.88 41.28
P3 45.39 50.28 47.72

Long Term Trading Plans for X

March 14, 2018, 8:39 am ET

The technical Summary and associated Trading Plans for X listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for X. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

X - (Long) Support Plan

Buy over 35.18 target 41.28 stop loss @ 34.92.
The technical summary data tells us to buy X near 35.18 with an upside target of 41.28. This data also tells us to set a stop loss @ 34.92 to protect against excessive loss in case the stock begins to move against the trade. 35.18 is the first level of support below 40.24 , and by rule, any test of support is a buy signal. In this case, support 35.18 would be being tested, so a buy signal would exist.

X - (Short) Resistance Plan

Short under 41.28 target 35.18 stop loss @ 41.54.
The technical summary data is suggesting a short of X as it gets near 41.28 with a downside target of 35.18. We should have a stop loss in place at 41.54 though. 41.28 is the first level of resistance above 40.24, and by rule, any test of resistance is a short signal. In this case, if resistance 41.28 is being tested, so a short signal would exist.

X Long Term Analysis

X EPS Analysis

X Dividend Chart

X Revenue chart

X Growth rate - Quarterly

X Growth rate - Yearly