Marc. D schreef op 18 september 2013 20:42:
ArcelorMittal (ADR) (NYSE:MT) breaks out over $14.75
By Lindsay Noggle
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Boston, MA, 09/05/2013 (nysepost) – ArcelorMittal (ADR) (NYSE:MT) opened gap up and depicted potency during the early part of the session but got affected by a selloff at the middle of the session to mark its closure on a flat note. The volume at 8.5 million was a bit higher as against the average volume of 6 million. The candle shaped a red one indicating only a awkward moment in the uptrend.
One of the best ever scrips, this turned also one of the most battered scrips in the bear market of the year 2008 and it truly never bulged out of it up till now. A few signals are there on the prospect for a possible U-turn however much more affirmation is still necessary. One of the primary signals could be detected from the indicators, particularly RSI. The 14-day RSI generally proceeds in a band of 30 – 70 in a bear zone and 40-80 in the bull zone. This disparity in behavior comes in incredibly helpful when we attempt to get a sense of any potential conversion.
In this case, the RSI has not shifted over 70 for the past 3 years or more. But the motivating thing is that the preceding short term alteration could not push it lower than 40 and in its place, got a sharp bounce to 70 levels, for the first time in the last 3 years. At this time, if it can move above 75 or hit 80, that would be a definite indication to the stage altering from bear to bull.
The second signal arrives from the value itself, which is much more significant. The value action from the February last year top of $23.62 has produced an Ending Diagonal or a Falling Wedge that demonstrates tiredness on the part of the bears. The breakout point of the model approaches to $14.75. A victorious breakout of this would provide us an objective of $23.62 in the coming time and with a Cup & Handle model breakout already at position above $13.49, it seems very much possible. The Cup & Handle pattern on the everyday charts provides us objectives of $14.42 and $15.88.