U.S. Metal (X) shares might be within the highlight to start out the week after President Donald Trump on Friday mentioned he plans to double steel and aluminum tariffs to 50%.

Addressing a rally on the one of many metal producer’s processing vegetation in Pennsylvania, the president mentioned the transfer would assist defend American steelworkers and “additional safe the metal business.” Proponents of metal tariffs argue they enhance the home metal sector and cut back reliance on foreign-made metal, whereas critics say they increase prices of native producers and cut back innovation inside the business.

Friday’s announcement got here after Trump just lately gave the green light to a «partnership» between U.S. Steel and Nippon Steel. A $14.1 billion merger between the 2 steelmakers was initially blocked by the Biden administration in early January on account of nationwide safety considerations.

U.S. Metal shares have gained 33% over the previous two weeks and commerce almost 60% greater because the begin of the yr as of Friday’s shut.

Beneath, we break down the technicals on U.S. Metal’s chart and determine key worth ranges that traders will probably be watching.

Symmetrical Triangle Breakout

Shortly after the 50-day moving average (MA) crossed above the 200-day MA to type a bullish golden cross on the chart in late March, U.S. Metal shares consolidated inside a symmetrical triangle, indicating a pause within the inventory’s uptrend that started in late December.

Extra just lately, the worth staged a decisive breakout final month, with robust follow-through shopping for driving the relative strength index into overbought territory. It’s additionally price mentioning the rally has occurred on above-average trading volume, signaling conviction behind the leap.

Let’s apply technical analysis to determine an upside price target amid the potential for additional shopping for and likewise find support levels price monitoring throughout future retracements.

Measured Transfer Worth Goal

To forecast a worth goal, traders can use the measured transfer approach, additionally know by chart watchers because the measuring principle.

When making use of the evaluation to U.S. Metal’s chart, we calculate the gap of the development in points that preceded the symmetrical triangle and add that quantity to the sample’s breakout space. As an example, we add $16 to $43.75, which tasks an upside goal of $59.75, round 11% above Friday’s closing worth.

Key Assist Ranges Price Monitoring

The primary decrease degree to watch sits round $46. Retracements to this key space would probably encounter assist close to the highest of the symmetrical triangle, which additionally carefully aligns with a trough that shaped on the chart in February final yr.

An in depth under this degree might see the shares take a look at assist close to $43. This location might appeal to shopping for curiosity across the upward sloping 50-day MA and a sequence of peaks on the chart stretching again to April final yr.

Lastly, a extra important drop in U.S. Metal shares might carry the $36 degree into play. Traders might look to accumulate shares on this area close to a horizontal line that connects a number of troughs that developed on the chart between December 2023 and March this yr.

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As of the date this text was written, the creator doesn’t personal any of the above securities.