Reuters reported that shares in ArcelorMittal South Africa, Africa's largest steel producer, are pinned down in volatile trade near 7 year lows on lingering concerns about falling Chinese demand and its impact on steel prices.

But the share is getting technical support at these levels. At 10:10 SA time, the shares were down by 0.47% to ZAR 51.14 after earlier falling well over 2% to ZR 50.03.

According to Reuters data, the stock got strong support around this level this week and two weeks ago, and November 2005 when it was last around this value.

Mr George Glynos MD at financial consultancy ETM said that "This is the fourth attempt in the past two weeks to break below ZAR 50 on this share but a combination of past congestion and recent prior lows, coupled with monthly signals which suggest it is in oversold territory, suggest there may be a near term bottom forming."

Source - Reuters

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