US Steel (X) traded 5% higher on Tuesday morning, after Citigroup (NYSE:C) upgraded the stock to Buy from Neutral. Citi made two points. The first is that steel prices have recently fallen 25%, and the second is their forecast for higher steel prices. As such, Citi increased their price target on X from $43 to $46.
Our analysis of market cycles on US Steel’s weekly chart below indicates that Citi’s call may be off the mark...at least until next month. X is midway through its current market cycle, which is due to conclude in May 2018. Until then, we see additional downside price action, with a target around $31. Assuming the patterns continue to follow what has been very regular cycle rhythms, at that time, buyers can consider picking up some shares.
Which stock should you buy in your very next trade?
AI computing powers are changing the stock market. Investing.com's ProPicks AI includes 6 winning stock portfolios chosen by our advanced AI. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. Which stock will be the next to soar?
Unlock ProPicks AI