President Trump emphasized American steel in his address to Congress last evening. Sounds like an invitation to look at the charts of steel companies around the world.
Starting with the A's, let's look at ArcelorMittal (MT) , which is up more than 6% today.
In this one-year daily bar chart of MT, above, we can see a pretty durable uptrend in place the past 12 months punctuated by a number of short-lived pullbacks. MT is above the rising 50-day moving average line, which was successfully tested every month since October. The 200-day moving average line turned up in July and remains in a very positive configuration. The volume pattern as a histogram is hard to read, but the On-Balance-Volume (OBV) line generally goes up with the price action. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been above the zero line (positive) for much of the past 12 months.
In this three-year weekly chart of MT, above, we can see the downtrend from 2014 to early 2016. Prices quickly rebound from below $3 to over $6, breaking above the 40-week moving average line in the process. There is a pullback to the 40-week moving average line, which starts to turn positive by the end of June. Prices have continued higher and so has the 40-week average. The weekly OBV line has been neutral overall since early 2016. The weekly MACD oscillator turned bullish in May when it moved above the zero line.
This long-term Point and Figure chart of MT is interesting in that prices are just about ready to break a major downtrend line. There is some old resistance above the market, but it looks like MT has the buying interest to carry prices to the $13-$14 area in the months ahead.
Bottom line: Aggressive traders could trade MT from the long side, buying here and above $9.50 while risking below $8.
