By InTheMoneyStocks.com on March 3rd, 2010 11:41am Eastern Time
United States Steel Corporation (NYSE:X) is running higher today on the back of a solid drop in the dollar. X is up $2.00 (3.57%). The dollar is getting hammered today as global optimism is chasing money away from the safety of the U.S Dollar. The PowerShares DB US Dollar Index Bullish
(Public, NYSE:UUP) is trading higher by lower by $0.19 (0.80%).
While X has had a great move higher since its 200ma daily low almost a month ago, it is coming into significant resistance. The key level here is $57.50. On the chart this shows directly as a possible drop level.
Another stock that looks to be nearing massive resistance is Steel Dynamics, Inc. (NASDAQ:STLD). Just like U.S. Steel, this stock has jumped significantly into massive daily resistance at $17.50. From this level, I am looking for a pullback of sizable proportions.
Both stocks are in the same sector and are extremely over extended. I will release my exact entries should the swing trade meet my criteria in the Research Center at InTheMoneyStocks.com. My bias is now on the bearish side. Let's see how these play out!
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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