US Steel Falls to Oversold on Downgrade
US Steel (NYSE: X) fell 3.36% yesterday after being downgraded to “hold” from “buy” by analysts at Keybanc. This was the second big down day for X in less than a week. The stock fell 7.03% last Wednesday after the Commerce Department announced it would not impose tariffs on steel from South Korea. Tariffs would have benefitted X by making South Korean imports more expensive.
The string of bad news has pushed X into oversold territory with a PowerRatings of 8. The stock is oversold on a number of other indicators that can be found at TradingMarkets Live Screener. ConnorsRSI, for example, confirms that X is oversold.
PowerRatings are based on the relative strength or weakness of particular stocks or ETFs. The higher the rating, the greater the one week historical gain has been for stocks and ETFs with that rating. For best results, enter trades on stocks with a PowerRatings of 8 or higher with a limit order 3-7% below the previous day’s closing price. Higher % limit entries have historically shown a greater percentage of winning trades but higher % limit orders also reduce the chance of trade execution.
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All data is as of the end of day on 2/24/2014.