Shares in ArcelorMittal South Africa, 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 10:10 SA time, the shares were down 0.47 percent to 51.14 rand after earlier falling well over 2 percent to 50.03 rand.
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 50 rand 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. - Reuters