Review
Since my first article, the share price of the Essen-based steel group has now undergone a correction of over
40% behind. However, this is after reaching the am 21.06. described target price of €5.50
finished?
First of all, the current situation of the Group has not improved so far. He
continues to struggle with rising production costs, rising wages due to inflation,
pandemic consequences, Ukraine war problems and the effects of the incipient recession.
Current
In my opinion, an improvement of the current situation will only be achieved by a merger, a
significant decline in inflation and a weakening of the energy crisis, particularly in terms of
Natural gas, enter. The group had already attempted a merger in 2019, but this was blocked by the
EU Commission prohibited. Even a recent lawsuit against this decision had no
Success. This means that the company’s chances of surviving the next few years are
other problems taken together, continues to be poor.
In terms of price, I see the share after hitting the lower line of the currently developing
hearus-forming triangles a slight recovery. As a result, the share price rose today from €5.30 by currently
1% to approx. 5.50€. Should this climb continue, I see the first important
Resistance at approx. 6.20€. Should this be respected, it would result in a new
Short opportunity. Otherwise, I see a breakout from the Triangle to the downside for very
In this case, I expect a further correction in the direction of €4.00.
Jonas Wuttig
