Aperam Shares Decline by 5.08%, Correcting Strong Midweek Rise
Aperam's stock ended the session on Friday, October 10 at €31.42, down 5.08% from the previous day's close of €33.10. This downward movement occurred in a generally declining Parisian market, with the CAC 40 dropping 1.53% to 7,918 points. Trading volume for the stock remained moderate, with 0.55% of the capital changing hands during the day. Despite this correction, the weekly performance remains positive at 3.08%, driven by a significant rebound midweek. Over three months, the stock has gained 12.78%, and over one year, it has increased by 18.12%, significantly outperforming the Paris index which has risen by 4.73% over the same period.
Friday's decline follows a strong increase recorded on Wednesday, October 8, when the stock jumped more than 6% following the announcement by the European Commission of a plan to protect the European steel sector. Brussels had proposed reducing annual steel import quotas by 47% and doubling customs duties to 50% for volumes exceeding these quotas, a measure welcomed by Aperam as essential in the face of global overcapacities. Thus, Friday's drop appears as a profit-taking after this surge, with no particular announcement to justify this downward movement.
Technically, several indicators suggest a consolidation phase after recent gains. The Relative Strength Index (RSI) reached 79, a level considered close to the overbought zone, indicating an intense bullish momentum but also a risk of short-term exhaustion. The price approached its resistance threshold at €33.38, a level coinciding with the upper boundary of the Bollinger Bands at €33.36. This proximity to resistance partly explains the stock's difficulty in continuing its rise. Additionally, the MACD remains positive at 1.52, well above its signal line at 1.02, with a histogram at 0.50 confirming the persistence of bullish momentum. The stock is now trading well above its 50-day and 200-day moving averages, at €27.32 and €27.49 respectively, indicating a favorable underlying trend despite the day's correction. Finally, with a beta of 0.30, Aperam shows very low sensitivity to market movements, which limits the extent of its variations relative to the index.
