ArcelorMittal Shares Rise 2.18% to $32.36 Amid Technical Breakout Signals

ArcelorMittal (MT) shares rose 2.18% in the most recent trading session to close at $32.36, marking the third consecutive day of gains and a cumulative increase of 6.48% over that period. This price action brings the stock to a critical technical juncture following its rebound from the August 4 low of $30.36.
Candlestick Theory
The recent three-day rally featured a notable bullish candle on August 7, with a high of $33.36 and a close near the upper third of the daily range at $32.36, though the extended upper shadow indicates profit-taking near resistance. This advance faces immediate resistance at $33.36 (August 7 high), followed by the significant $34.80 resistance zone established in late July. Key support lies at $31.06 (August 6 low) and the $30.36 swing low. The rejection near $33.36 after a sharp rally may signal short-term exhaustion, warranting vigilance for bearish reversal patterns.
Moving Average Theory
The 50-day moving average (MA) at $31.81 and the 100-day MA at $31.45 provide dynamic support, with the current price trading above both. The 200-day MA at $30.12 reinforces the longer-term uptrend. A bullish signal emerges as the shorter-term 50-day MA converges toward a potential "golden cross" above the 100-day MA, supporting the intermediate-term constructive bias. The price’s position above all three MAs underscores a positive trend structure.
MACD & KDJ Indicators
The MACD histogram shows bullish momentum, with the signal line crossing above zero after a positive divergence in late July. However, the KDJ oscillator presents a mixed picture: the %K line at 85 and %D line at 82 indicate overbought conditions but remain in bullish territory. While MACD supports further upside, the KDJ’s near-term overbought reading suggests consolidative pressure may develop. Confluence exists in both indicators reflecting upward momentum, though the KDJ’s stretched position warrants monitoring for potential bearish crossovers.
Bollinger Bands
Bollinger Bands expanded significantly during the August 5–7 rally, signaling increased directional conviction as price challenged the upper band near $33.36. The 20-day average at $31.80 acts as immediate support, with the lower band at $29.90 providing a secondary buffer. The sharp expansion after the July consolidation phase implies sustainable volatility, though a reversion toward the midline could unfold after the rapid ascent.
Volume-Price Relationship
Volume surged 60% during the August 7 advance to 3.45 million shares, validating the bullish breakout. The accumulation pattern is further supported by above-average volume during the preceding two up days. This robust volume confirmation enhances the sustainability argument for the rally. Conversely, the August 4 decline to $30.36 occurred on elevated but declining volume, suggesting limited bearish follow-through.
Relative Strength Index (RSI)
The 14-day RSI at 49.4 reflects a neutral stance after exiting oversold territory. While the RSI’s recovery from the July 31 low of 30 demonstrates improving momentum, the absence of overbought conditions (above 70) suggests room for additional upside. Divergence is noted against the price: the RSI failed to reach its prior high during the recent advance, implying weakening momentum that could precede consolidation.
Fibonacci Retracement
Using the primary swing low at $30.36 (August 4) and swing high at $34.80 (July 23), key Fibonacci levels project resistance at $32.58 (50%), $33.10 (61.8%), and $33.85 (78.6%). The recent rejection near $33.36 aligns closely with the 78.6% retracement level ($33.85), reinforcing its technical significance. Support levels cluster at $32.06 (38.2%) and $31.41 (23.6%). Confluence occurs between the 38.2% Fibonacci support ($32.06) and the 100-day moving average ($31.45), strengthening this defense zone.
In conclusion, ArcelorMittal exhibits constructive technical positioning with broad-based indicator support for its recovery rally. Confluent bullish signals include the moving average alignment, volume confirmation, and MACD momentum. However, short-term overbought signals from the KDJ and Fibonacci resistance warrant caution near $33.36–$33.85. A sustained break above this resistance zone would target the July high of $34.80, while failure to hold $32.06 support may trigger consolidation toward the key $31.45–$31.81 MA cluster.