The week before last, I already published an analysis of the steel group, and the target price of €6.50 was almost reached.
This is also due to the announcement made by the company last Friday that the IPO of its hydrogen subsidiary Nucera has been postponed due to the current market environment.
The IPO, initially even scheduled for the first quarter of this year, has given some shareholders hope for a long-term recovery in the stock.
After reaching a low of €6.58 at the start of the week yesterday, the share price recovered to €7.12 today, but has been moving back towards €7.00 since midday.
The chart forms a triangle in the long term, the current correction is a confirmation of the upper downward trend line in the daily chart.
Since no resistance can be seen at the moment, I expect a further price decline to approx. 5.50€, as the lower uptrend line is located there, which could represent the next resistance.
Otherwise, I see a slight price recovery to 7.75€ towards the 50 MA daily. In my opinion, this would create a short opportunity at a closing price below €7.00.