Escalating energy costs have forced steelmakers to cut production across Europethreatening massive plant closures that some warn could be permanent in a sector that employs more than 300,000 people and contributes tens of billions of euros to the region’s economy.
ArcelorMittalthe world’s second-largest steelmaker, has also halted a blast furnace in Germany, along with others in France, Poland and Spain, and expects its fourth-quarter European output to be 17% lower than a year earlier.
From the key point of view, ArcelorMittal it lost a large support zone, between 24.45 – 25.095 euros and has now validated a bearish diamond structure, formed by two symmetrical triangles, according to Néstor Borràs, technical analyst. This figure allows us to set a target of 16.59 euros, as we see in the graph.
Right now has missed the bottom of a short-term bearish channelwith which another short-term bearish target can be projected, at 18.53 euros.
If it loses the lows of July 6 at the daily close, the €20.55, that are acting as support, a Fibonacci target could be placed at 15 euros.
Despite these poor prospects for the value, in the long term the consensus of analysts gives it advice to buy and a target price of 34.55 euros, which gives it a potential rise of 61%.
According to the technical indicators of Investment Strategies for ArcelorMittalthe value would be in a bearish phase, and has a score of 1 out of 10.