Technical Analysis: United States Steel Corp.

United States Steel Corp.

From the lows of $16 experienced in September till present this stock's price has doubled in value leaving many traders anticipating a reversal in trend when judging the steepness of the incline in price. In understanding the reasons to why we've seen a surge in price over a relatively short span of time I think its fair to assume that this stock like so many others in the commodities space was heavily shorted given the poor sentiment built into the sector over the last few years. 

A sudden change in the supply and demand dynamics has caused a reactive response from traders who had been stubborn in changing their view however observing the trend in volumes does suggest the buyers might becoming absent once again after an impressive rally that's yielded great returns. 

I wouldn't be surprised to see a pullback incur in the weeks ahead as traders in profitable positions take advantage and begin selling off exposure while knowing markets are headed into the festive season.