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Optimistic about Thyssenkrupp after latest price move

17th November 2021 07:34

by Alistair Strang from Trends and Targets

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After bouncing off last year's lows, the steel producer's share price just lurched forward again. Here's what independent analyst Alistair Strang thinks of prospects.

Thyssenkrupp steel 600

Our weekly wander into Europe to search for something interesting reveals German multinational steel and industrial giant Thyssenkrupp AG (XETRA:TKA) is presently looking fairly interesting, their share price pretty active with some useful potentials.

The company certainly falls into the “bigger than you thought” category as we’d only associated them with Bilstein shock absorbers. Needless to say, not only do they have fingers in a lot of pies but they actually own the pie shop!

From trains, shipbuilding, elevators, industrial machinery, and rated among the 10 largest worldwide steel producers, the organisation almost define the word “conglomerate”.

Presently trading around €10.35, the share price need only exceed €10.60 to hopefully enter a cycle to an initial €11.0. If bettered, our “longer term” secondary calculates at €11.4, but we’ve an important caveat. Whatever has provoked the immediate surge this week, need only exceed €11.4 and the share price could happily trundle onward to the €12.3 level.

Visually, there’s a pretty solid expectation of some hesitation around such a point, but it’s worth pointing out that, should the share price manage to close a session above €12 euro, Thyssenkrupp will be regarded as entering an important Big Picture phase, one which calculates with a distant €16 as possible.

We’re already optimistic on this one, suspecting the price needs to sink below €9.3 to suggest running shoes will be required.

tka161157

Source: Trends and Targets. Past performance is not a guide to future performance

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

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