ArcelorMittal Shares Dip Despite Buy Recommendation and +120% Yearly Gain
Shares of the steel giant fell by 1.48% this Wednesday, trading at 52.04 euros in a likewise declining Parisian market. This drop occurs even as William O'Neil has just issued a buy recommendation for the stock on April 15. With the first quarter results due in two weeks, the stock's recent trajectory remains impressive, boasting a nearly 120% rise over the past year.
Current Session Developments
During the session, ArcelorMittal SA is trading lower at 52.04 euros, after closing at 52.82 euros the previous day. The CAC 40 is down by 0.52% at 8,284 points, while the SBF 120 has dropped by 0.47%, reflecting a cautious tone in the Paris market. Conversely, the Dow Jones and the S&P 500 are showing gains of 0.66% and 1.18%, respectively, in the session across the Atlantic. William O'Neil released a buy recommendation for the stock today, without specifying a price target. Despite this positive assessment, the stock witnessed a decline this Wednesday, in a context where it has already gained 14% over the past seven days and more than 24% over three months. The next identifiable catalyst in the financial calendar is the publication of the first quarter 2026 results, scheduled for April 30.
Technical Analysis
From a technical standpoint, the stock of the world's leading steel producer is trading well above its 50-day (48.39 euros) and 200-day (35.88 euros) moving averages, confirming the strength of the underlying bullish trend. This positioning reflects the magnitude of the rally in recent months, which has propelled the stock price by nearly 120% over a year. However, the RSI, an indicator measuring the speed and magnitude of price changes, is currently at 34, close to the traditionally set oversold zone of 30. This suggests that the stock has faced recent selling pressures despite its medium-term upward trajectory. The stock is currently in the upper middle part of its Bollinger Bands, between a low at 39.76 euros and a high at 59.41 euros. The most relevant technical support is positioned at 42.01 euros, while resistance is at 56.92 euros, allowing for significant fluctuation in both directions.
