thyssenkrupp AG : Steel is weak
By Oscar Salza
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
€12.4 | €0 | €0 | -100% |
From a fundamental viewpoint, the group is in a bad financial situation. Analysts have recently downgraded their forecasts for EPS to €-0.32 ; only in 2013 the group might record a net profit. In 2012 the debts’ situation could double, according Thomson Reuters’ estimates.
Graphically the share is testing historic low levels, tested in 2008. The share is trading in a strong bearish trend ; since January the share fell 50% to 11.5 EUR. The moving averages are trending down and are still above prices, thereby stopping any rebounds.
The actual zone could play as stepping stone for a solid technical rebound, or push the bearish trend’s continuation. For this reason we suggest to take a short position if the share breaks out the 11.5 EUR technical support. In this case new low scenario could be opened towards 8.5 EUR.
Contrariwise a break out of 13 EUR pivot point, could lead a strong bullish trend with a return towards 15 EUR.