In all honesty, digging up all the dirt there is to find on ArcelorMittal (ACL) would take a very long time. Instead, we will merely have a brief look at some of the more recent events that have occurred.
The first thing that jumps to the fore, is that the French government has made a few very damning comments about the company and the French Minister of Industry, Arnaud Montebourg, actually went as far as to say "We no longer want Mittal in France because they haven't respected France". Now this may seem fairly straight forward, but ACL is owned by a Mr. Mittal, so this row might be a little more personal the what it may appear.
Regardless of what the French think, the English - in the form of London's Mayor Borris Johnson- have come out and said "if France doesn't want you, Britain does". This certainly does appear to be a good story unfolding right in front of us. It's not every day that countries start arguing with, and over, the worlds bigger steel producer. We will certainly stay tuned for more. In the mean time, let's have a look the 'technical' picture by turning our attention to some charts.
First up is the Daily Chart. You will notice that the overall trend is very obviously down. So down in fact that over the last 12 months ACL has fallen 45.4% during the period.
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| ACL - Daily Chart |
Another thing that should stand out is that there is the makings of the Tweezer Top and Dark Cloud Cover candle formations. Now I say 'the makings of' as the day is not yet over and the formations are therefore not yet confirmed.
Second up; we will look at a shorter time frame, in particular, a 1 hour Chart.
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| ACL - 1 Hour Chart |
What should stand out here is that there are two types of divergence present; both reverse divergence and both are bearish.
Now when you consider that ACL warned Trade Unions that next year will "mark the low point in the cycle." and the feeling is that there is room yet for AcerlorMittal's woes to do nothing but increase over the 6 to 12 months to come.
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