U.S. STEEL STOCK RISES DESPITE RATING DOWNGRADE
U.S. Steel Corp.’s stock is currently trading at 11.13-higher by 3.01% as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 3.05%. The stock has pared all of its earlier losses and turned positive after the opening bell.
Investment bank J.P. Morgan downgraded the steel producer’s stock to neutral from overweight. The investment bank also lowered its price target on stocks of U.S. Steel to $12 per share from $14 a share. J.P Morgan downgraded stocks due to its reduced outlook for an adjusted third-quarter loss of 35 cents per share and continued idling two of its main U.S. blast furnaces.
BMO Capital markets said last week that the company continues to feel the brunt of weakness in underlying market conditions due to continued high operating costs originating from the ongoing asset revitalization program.
On the technical front, the RSI is currently at 41.44% and suggests that the market can move in the upward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger Bands but is heading upwards.
TRADE SUGGESTION- LIMIT BUY AT 11.08 TAKE PROFIT AT 11.38 STOP LOSS AT 10.93