ArcelorMittal Shares Drop 2.61% on Monday, Hurt by Naval Blockade Against Iran

Broader Market Correction Affects European Industrial Stocks

The decline of ArcelorMittal SA this Monday is part of a broader market correction affecting European industrial stocks. The announcement on April 13 of a U.S. naval blockade targeting Iran, threatening to disrupt maritime traffic in the Strait of Hormuz, has caused Brent crude to surge above 100 dollars a barrel. For a steelmaking group of this magnitude, where energy costs are a major expense, the prospect of sustainably high oil prices is a direct pressure factor on operational margins. This context weighs even more as the stock had shown a nearly 11% increase over the past seven days and more than 23% over three months, bringing its annual performance to nearly 120%. Today's correction thus comes after a significant upward trend. The next key date for the markets is April 30, the date set for the publication of the first quarter 2026 results, which will provide insights into the potential impact of recent macroeconomic developments.

Technical Analysis of ArcelorMittal's Stock

From a technical analysis standpoint, ArcelorMittal's Relative Strength Index (RSI) stands at 34, a level close to the conventionally set oversold zone of 30. This indicator, which measures price momentum over a given period, reflects the magnitude of selling pressure observed in recent sessions despite the underlying bullish trend. Moreover, the current price of 50.68 euros is above the 50-day moving average (48.39 euros) and significantly above the 200-day moving average (35.88 euros), indicating a medium and long-term trend that remains upward. The most relevant technical support is located at 42.01 euros, a level far from the current price, while the identified resistance at 56.92 euros is the next threshold to cross in case of a rebound. Investors will monitor the evolution of the geopolitical situation and its repercussions on energy prices before the end of April quarterly publication.