ArcelorMittal Drops 1.75% at Midday After Six Consecutive Sessions of Gains
ArcelorMittal's share price falls by 1.75% to 45.54 euros this Friday, January 23, at midday, taking a breather after six consecutive sessions of gains with an RSI at 80 indicating an overbought zone. This technical correction occurs as Citi raised its price target to 55 euros the day before, in anticipation of the annual 2025 results to be published on February 6.
Technical Indicators Signal Need for Consolidation
The decline recorded this Friday falls within a chart configuration marked by the exhaustion of technical indicators. The RSI reached 80 the previous day, significantly exceeding the overbought threshold set at 70, indicating a short-term overheating and suggesting a need for consolidation. The price is now slightly above the upper Bollinger band at 44.65 euros, confirming an extension of the movement that might require a digestion phase. Despite this temporary setback, the underlying trend remains decidedly positive. The stock maintains a strong position above its strategic moving averages, with the MM50 established at 38.30 euros and the MM200 at 31.19 euros. Over three months, the performance reaches 35.94%, while the annual gain exceeds 102%, illustrating the robustness of the steelmaker's recovery. The MACD also displays a positive histogram at 0.40, confirming the continuation of the bullish momentum despite this short-term corrective movement.
Analyst Recommendations Remain Supportive for ArcelorMittal
The environment of recommendations remains supportive for ArcelorMittal. Recent revisions by analysts show a renewed interest in the stock, notably with Citi's upgrade to 55 euros last Thursday, following those from Jefferies at 44 euros and Goldman Sachs at 36 euros in mid-January. Morgan Stanley also raised its target to 46.20 euros at the beginning of January while upgrading its recommendation to overweight. These adjustments reflect expectations of an improving market environment, driven by the implementation of the Carbon Border Adjustment Mechanism which should support European producers' margins. The next key event awaited by investors is the publication of the 2025 annual results, scheduled for February 6. This date will be a major test to validate the scenario of operational recovery of the group and confirm the financial trajectory in a transforming sector. Market players will particularly scrutinize the evolution of EBITDA and the steelmaker's ability to generate free cash flow in a context of gradually recovering demand.
