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U.S. STEEL STOCK FALLS ON RATING DOWNGRADES - Capital Street FX
U.S. Steel’s stock is currently trading at 15.71-lower by 4.27% as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 4.9%. The stock has pared some of its earlier losses after the opening bell.
Investment bank UBS downgraded the company’s stock to Sell from Neutral with a $10 price target. The bank lowered US Steel’s stocks ratings citing near-term capital investment will not reverse market share losses in the coming years.
The bank also said that the company is spending significantly in its asset base to remain competitive but will result in negative free cash flow over three years (2019-2021). UBS also cut its 2019-21 EBITDA estimates by 31%. Stocks of US Steel are down 10% year-to-date.
On the technical front, the RSI is currently at 38.97% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger Bands and is heading downwards.
TRADE SUGGESTION- LIMIT SELL AT 15.76 TAKE PROFIT AT 15.31 STOP LOSS AT 15.99