World-leading steelmaker ArcelorMittal ( MT) appears to have hammered out a base pattern since July, but a sustained uptrend may have to wait for signs of more aggressive buying.
Let's check out the charts and indicators for these ADRs.
In the daily bar chart of MT, below, I see that prices have weakened to a low in late September. The shares recovered and now trade above the 200-day moving average line. The 200-day line is closer to bottoming while the slope of the 50-day moving average line is positive.
The trading volume has declined the past three months and that is not constructive. The math-driven On-Balance-Volume (OBV) line is mostly flat and is not indicating more aggressive buying.
The trend-following Moving Average Convergence Divergence (MACD) oscillator turned lower in November and is now just barely above the zero line.
In the weekly Japanese candlestick chart of MT, below, I see a mixed chart. Prices are holding above the 40-week moving average line but the slope of that line is still bearish. The candle patterns in December are mixed -- I can see a large upper shadow and also a large white real body.
Trading volume has been slowing and that is not a positive development. The weekly OBV line shows only slight improvement the past three months. The MACD oscillator is trying to move above the zero line for an outright buy signal.
In this daily Point and Figure chart of MT, below, a potential downside price target in the $23 area is shown.
In this weekly Point and Figure chart of MT, below, I can see a bullish price target in the $41 area.
Bottom-line strategy: The charts of MT are looking better but they lack an important part of the puzzle: signs of expanding and aggressive buying. Let's make an appointment to review the charts of MT again in the months ahead.
