X breaks below key technical support level
United States Steel Corporation (X) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, X finished the week -2.98% lower at 8.79 after losing $0.18 (-2.01%) today, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 8.79 marks the lowest recorded closing price since February 26, 2016. Closing below Thursday's low at 8.92, the share confirmed its breakout through the previous session low after trading up to $0.23 below it intraday.
Daily Candlestick Chart (X as at Feb 14, 2020):
Friday's trading range has been $0.31 (3.46%), that's slightly below the last trading month's daily average range of $0.37. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for X.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Wednesday, X lost -1.64% on the following trading day.
Prices broke below the key technical support level at 8.96 (now R1), which is likely to act as resistance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. Its common bearish interpretation has been confirmed for United States. Out of 125 times, X closed lower 56.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.40% with an average market move of -0.33%.