ArcelorMittal SA (NYSE: MT) shares rose in value Thursday Dec 1 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks opened with slight gains on Thursday.
The Dow Jones Industrial Average DJIA, +0.31% rose 38.22 points, or 0.2%, to 19,174, while the S&P 500 SPX, +0.01% added 2.1 points to 2,202, a rise of 0.1%.
The Nasdaq Composite Index COMP, -0.32% rose less than 1 point to 5,323, essentially unchanged on the day.
Analysts at Zacks Investment Research upgraded shares of ArcelorMittal SA (NYSE: MT) from Hold to Buy today. With a rating of Buy on the shares, the company has a 52-week high of $7.75. The one-year price target of $7.58 is less than the opening price of $7.73, causing a number of other analysts to comment on the company recently. Stock prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
Shares of ArcelorMittal SA (NYSE: MT) opened at $7.73 on Tuesday trading between $7.66 and $7.75, and last traded at $7.68, which represents a spike of $0.11 or 1.45% from the previous closing price.
ArcelorMittal SA (NYSE: MT) now has a market cap of 23.49B.
ArcelorMittal SA (NYSE: MT) Average Daily Trading Volume
3,039,698 shares traded hands yesterday, lower than normal, out of a total float 3,058,051,000. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to pinpoint substantial volume aggregation or distribution by institutional investors.
While increased trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks expresses a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are considering.
ArcelorMittal SA (NYSE: MT) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
Traders can make more useful judgments on trades when they track the activity of professional investors.
With that in mind, ArcelorMittal SA (NYSE: MT) now has a 50-day MA of $6.79 and 200-day MA of $5.89. It has traded in a 52-week range between $2.93 – 7.75 and today’s last price is 0.90%% lower than the 52 week high of $7.75.
Earnings growth is an important factor to consider when investing in stocks and investors identify companies that have increased their earnings at least 25% or more for a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.