The chances of Severstal shares advancing to 1720 are not yet lost
Severstal shares on Tuesday expectedly held better than the market, showing a positive result. In the moment it was more significant, but the general market mood had an impact. In addition, we see a continued decline in iron ore and steel prices in China.
Technically, the price broke out of the sideways trend on Monday and continued to rise yesterday, falling a little short of the round mark at 1700. A little higher, around 1720, there is a downtrend stretching from record levels.
There is no overbought on RSI in the paper neither on the daily, nor on the four-hour charts.
While the chances of advancing to 1720 are not lost yet, a siege of the nearest supports is likely today.
The external background is moderately negative this morning. Asian indices are showing a negative direction. Futures for morning are getting cheaper by 0.3%. China steel and iron ore futures are getting cheaper. Opening is expected below the previous session's closing level.
Severstal shares are still in a long-term uptrend. At the highs of the year, the price broke away from its 200-day moving average and stayed above it until September, when it returned to the summer lows, and then a more serious pullback. Now the price is recovering from the correction.
Stable quarterly dividends and high dividend yield attract investors. The consensus forecast, according to Interfax, is currently at RUB 2006.