ArcelorMittal Stock: Surge of +6.55% Following Announcement of European Steel Industry Protection Plan
The stock of the steel giant closed at €35.30 this Wednesday, October 8, marking a significant increase of 6.55% from the previous day (€33.13). This remarkable performance is part of a sustained upward trend, with a gain of 15.43% over the past week and an increase of 52.02% over the last twelve months, significantly outperforming the CAC 40's 6.39% over the same period.
Impact of the European Commission's Steel Industry Protection Plan
This surge follows the presentation on Tuesday, October 7, of the European steel industry protection plan by the European Commission. The proposed new measures include doubling the tariffs on steel imports exceeding quotas from 25% to 50%, and a 47% reduction in annual import quotas to 18.3 million tons. ArcelorMittal officially welcomed these proposals, describing them as essential for the survival of the European steel industry against Chinese competition. Trading volumes remained moderate with 0.47% of the capital traded, suggesting a positive yet measured investor reaction. The Relative Strength Index (RSI) now stands at 81, a very high level indicating the magnitude of the recent buying momentum. This momentum is accompanied by a clear breach of the previously identified technical resistance level at €33.45, paving the way for new highs. The upper bound of the Bollinger Bands, located at €33.46, has also been exceeded, confirming a breakout from the recent consolidation zone.
Analysis of Moving Averages Confirms Strong Upward Trend
The analysis of moving averages confirms the strength of the ongoing upward trend. The stock is now trading well above its 50-day moving average (€29.35) and its 200-day moving average (€27.12), showing a growing gap that indicates an acceleration of the movement. This technical configuration, reinforced by a positive MACD (line at 1.00 against signal at 0.71), highlights the strength of the buying and the absence of bearish divergence. The slightly positive Chaikin Money Flow at 0.06 confirms that financial flows are supporting the rise in prices. The one-month volatility, measured at 7.27%, remains contained despite the recent gains, while the beta of 0.11 underlines the stock's typically low correlation with the movements of the CAC 40. This technical characteristic partly explains why ArcelorMittal can record such marked performances (6.55% today) while the Paris index only advances by 1.07%. The Average True Range (ATR) of 0.46 also indicates that the daily variation amplitude remains within normal technical proportions for this price level.
Long-Term Trajectory Particularly Favorable
This performance is part of a particularly favorable long-term trajectory, with gains of 27.34% over three months reflecting a sustained revaluation of the steel sector. The current technical momentum benefits from a more protective European regulatory context, likely to improve the profitability outlook for European steel producers against low-cost imports. The current technical levels suggest a significant break from the previous dynamics, with the stock now moving in a price zone unexplored for several months.
