ArcelorMittal : Getting stronger again!! Go for the best!ArcelorMittal, the world's leading steel and mining producer, present in 60 countries and with primary steel production facilities in 16 countries, presents a CLEARLY BULLISH technical outlook.
If we look at the H1 chart above, the trend is clearly bullish, as are its upper timeframes, H4, Daily, and Weekly. (SEE SUMMARY TABLE).
On March 6th, it reached a high in the 32 zone and has since retreated by approximately -12%.
March 14th signaled the end of the retracement on the chart, and as expected, it began to rise strongly again. Therefore, we must look for LONG positions on each price pullback.
---> How do we look for long positions?
To do this, we'll use any technique we like best, such as Fibonacci retracements, Bollinger Bands, moving average crossovers, etc.
In the chart below, we used Bollinger Bands on the M15 chart to enter, and as you can see, today's entry was marked LONG.
--> (REMEMBER that we only pay attention to signals that favor the main trend, i.e., BULLISH (Bullish). If a BEARISH (Bearish) signal is given, we ignore it because it is only used to close open positions.)
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Strategy to follow:
ENTRY: We will open two long positions in the current area of 29.80.
POSITION 1 (TP1): We close position 1 in the high zone of 32 (+7.5%).
--> Stop Loss at 29.10 (-2.5%).
POSITION 2 (TP2): We open a Trailing Stop position.
--- Initial trailing stop loss at (-2.5%) (coinciding with the 29.10 of position 1).
--- We modify the trailing stop loss to (-1%) when the price reaches TP1 (32).
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SET UP EXPLANATIONS
*** How do you know which two long positions to open? Let's take an example: If we want to invest 2,000 euros in the stock, we divide that amount by 2, and instead of opening one position of 2,000 euros, we open two positions of 1,000 euros each.
*** What is a Trailing Stop? A Trailing Stop allows a trade to continue gaining value when the market price moves in a favorable direction, but it automatically closes the trade if the market price suddenly moves in an unfavorable direction by a specified distance. This specified distance is the trailing stop loss.
-->Example: If the trailing stop loss is at -1%, it means that if the price drops by -1%, the position will be closed. If the price rises, the stop loss also rises to maintain that -1% during increases. Therefore, the risk decreases until the position enters a profit. This way, you can take advantage of very strong and stable price trends, maximizing profits.
Best regards and happy trading!
