ArcelorMittal shares lead CAC 40, just cents away from a key resistance level
Heading the CAC 40 this Wednesday, the Luxembourg steelmaker is posting the best performance of the Paris index at mid-session. Morgan Stanley's favorable opinion, published Monday, and the bullish momentum of recent weeks are driving the stock forward, despite the weighing context of the attack on its Kryvih Rih site in Ukraine.
Strongest CAC 40 gainer, the stock approaches its 64.60 € resistance
ArcelorMittal gains 3.23% during the session at 64.58 €, marking the best performance of the CAC 40 in a globally positive market (the Paris index advances 0.47% during the session). The stock is bumping against its resistance at 64.60 €, just cents away from this technical barrier. Breaking through this threshold would open an unprecedented configuration for the stock in recent months.
Moving averages confirm the strength of the trend: the price is evolving 3.15% above the 20-day MA at 62.61 € and 9.76% above the 50-day MA at 58.84 €. The RSI at 55 remains in a neutral zone, with no overbought signal. Over one month, the gain reaches nearly 10%, and over one year, the stock has more than doubled with a gain of 120.9%.
A Morgan Stanley opinion at 70 € and a strike on the Ukrainian site in the background
Morgan Stanley upgraded its opinion on ArcelorMittal to "overweight" on August 24, accompanying this view with a price target of 70 €. This level represents an upside potential of nearly 8.5% compared to the current price. The American bank thus provides support to the stock's valuation, even if today's movement exceeds in amplitude the sole mechanics of an analyst's position taking.
Furthermore, the steelmaking site in Kryvih Rih, in Ukraine, was struck by a missile strike during the August 15 weekend: two employees lost their lives, thirteen were wounded, and part of the industrial processes were interrupted. This event did not slow the stock market momentum, with the market appearing to have integrated this operational impact. Morgan Stanley's 70 € target remains the next reference to monitor in the continuation of the current movement.
