Johannesburg - Shares in ArcelorMittal South Africa
[JSE:ACL], Africa’s largest steel producer, are pinned down in volatile trade
near 7-year lows on lingering concerns about falling Chinese demand and its
impact on steel prices.
But the share is getting technical support at these levels.
At 08:10 GMT, the shares were down 0.47%t to R51.14 after earlier falling well
over 2% to R50.03.
The stock got strong support around this level this week and
two weeks ago, and November 2005 when it was last around this value, according
to Reuters data.
“This is the fourth attempt in the past two weeks to break
below R50 on this share but a combination of past congestion and recent prior
lows, coupled with monthly signals which suggest it is in oversold territory,
suggest there may be a near-term bottom forming,” said George Glynos, managing
director at financial consultancy ETM.