Renta 4 | Much like Acerinox, Arcelormittal is approaching historic resistance levels of €32, corresponding to a recurring peak zone since 2012. At the beginning of this year, both stocks threatened to jump above this level, but the corrections in February thwarted the attempt. Acerinox, failing to beat February’s highs of €11.65, has managed to consolidate prices above historical resistance levels at €10.20. Arcelormittal has yet to comfortably beat the €32 zone.
The situation, from a technical standpoint, is not insignificant. Breaking through the €32 zone would represent a milestone for the share price, opening up theoretical upside projections towards €54, almost 70% above that resistance level. A medium-term investor has a key support level to be respected at the June and August lows, between €25.7 and €26.3, which represents a risk of just 15%, offering an attractive risk/return equation for establishing strategies.
Recommendation: BUY ARCELORMITTAL above €32 (stop loss €25.5).
