The stock of the world’s largest steel producer, ArcelorMittal (BME: MTS), had picked up some new investor interest over the past couple of days. From the technical side, such activity led to a break of short-term downside resistance line taken from the high of December 13th. In addition to that, today, the share price broke above the high of last week, at 14.20, which confirmed a forthcoming higher high. More potential investors could see this move as a good sign, which may help MTS to drift higher, at least in the near term.
If the price continues to move in the northern direction, it could bypass the 200 EMA on the 4-hour chart and test the psychological 15.00 mark, which is the high of January 17th. That’s where the stock might stall for a bit, or even correct back down slightly. That said, if the buyers are still interested in MTS, this may help lift it again and surpass the above-mentioned 15.00 zone and target the 15.41 level, marked by the high of January 14th. Just a bit above that level lies another possible resistance area, at 15.54, which could get tested. That is the high of January 9th.
The RSI and the MACD seem to be in favor of the above-discussed idea. Both indicators are pointing higher. The RSI is above 50, while the MACD is close to zero and sits above its trigger line.
The alternative scenario here might be triggered if we see the share price sliding back below the 13.85 hurdle, which is marked by the inside swing high of December 31st. At the same time, MTS would also be back below its 21 EMA, which could put a bit more downwards pressure on the stock. A further decline might bring the price to the 13.51 obstacle, a break of which could set the stage for a move towards the current lowest point of January, at 13.20.
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