Steel producers and tariffs have been in the news lately. ArcelorMittal ADR (MT) produces steel and was upgraded to a buy today by TheStreet's quantitative service. How do the charts and indicators look? Let's see if these two investment approaches can produce a unified strategy.
In this daily bar chart of MT, below, we can see an uptrend from last June followed by a large triangle-like consolidation pattern since January. Prices are getting close to an upside breakout from this pattern.
MT has been crossing above and below the shorter 50-day moving average line but the longer 200-day line is rising and was successfully tested in early April and late May.
The On-Balance-Volume (OBV) line is positive but I would like to see it break out to a new high ahead of price.
The Moving Average Convergence Divergence (MACD) oscillator is crossing to a cover shorts buy signal.
In this weekly bar chart of MT, below, we can see that prices are above the rising 40-week moving average line.
The weekly OBV line has been neutral the past four months as prices have traded sideways.
The weekly MACD oscillator has been in bullish territory above the zero line since last July and is poised to turn up to a new buy signal.
In this Point and Figure chart of MT, below, we can see the consolidation pattern since December (look for the "C" on the chart). A trade at $37 is positive and a trade at $38 would be an upside breakout.
Bottom line: An upside breakout is pending. Traders could go long MT on strength and buy at $37 and $38 risking below $31 initially.