close icon

Bluescope Steel Stock Can Tumble to Single Digits

Bluescope Steel Limited is an Australian steep products manufacturer founded in 2002 and headquartered in Melbourne. The recent commodities upcycle helped the stock climb above A$26 a share for a while. Currently at A$21.24, the company’s market cap is still north of A$10 billion. But for how long?

Bluescope ‘s recent surge didn’t come out of nowhere. It is part of a recovery from as low as A$1.47 which has been in progress since mid-2012. However, all investors must know that no trend lasts forever, especially in the commodities market and the related companies. Should we expect Bluescope ‘s uptrend to continue or is it time for a pullback?

Bluescope Steel Stock Can Tumble 50 Percent

The weekly chart above puts the stock’s nine-year ascent into Elliott Wave perspective. Its structure can easily be seen as a five-wave impulse, labeled 1-2-3-4-5, where the fifth wave is extended. Unfortunately for the bulls, a three-wave correction is supposed to occur after every impulse.

Extended or not, the fifth wave is usually erased completely by the corrective phase of the cycle. For Bluescope, this means a decline to the support area of wave 4 near A$10 – A$9 a share can be expected. Percentage-wise, this translates into a >50% plunge from the current level.

Similar Elliott Wave setups occur in the Forex, crypto and commodity markets, as well. Our Elliott Wave Video Course can teach you how to uncover them yourself!



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

SAP Stock to Use Dot-Com Bubble High as Support

SAP is the biggest non-US software company in the world by revenue and the largest one in Germany by market cap. At its current stock price of roughly €115 a share, its valuation is higher than $150 billion. That is not much higher than its Dot-Com bubble peak at €77.50 a share in 2000, highlighting…

Read More »

Klépierre to Follow in Simon Property’s Footsteps?

Klépierre S.A. is Europe’s top mall operator with over 100 shopping centers in more than ten countries. Malls, the saying goes, were getting killed by the switch to e-commerce and the pandemic only exacerbated that trend. However, not all malls were created equal. Klépierre does not operate just any mall. It owns the most luxurious…

Read More »

Freeport Bearish Pattern Sets Targets Below $30

Despite the March 2020 Covid selloff, Freeport-McMoRan is trading significantly higher since we shared our last bullish update on it in December, 2019. As the price of copper soared, FCX soared with it to as high as $46.10 in May, 2021. However, no trend lasts forever and Freeport ‘s rally was no exception. The stock…

Read More »

L3Harris Elliott Wave Pattern Points to a 40% Drop

L3Harris Technologies, formed by the 2019 merger between L3 Technologies and Harris Corporation, is the sixth largest US defense contractor. The company is decently profitable and financially sound, which helps explain why the stock is hovering close to its all-time high. And indeed, L3Harris has been very generous to investors throughout the years. The stock…

Read More »

FICO Stock, A Barometer for the Economy, Looks Weak

In most countries, financial institutions use some kind of credit scores to better evaluate a borrower’s creditworthiness. In the United States, the FICO score, maintained by the Fair Isaac Corporation, is used in over 90% of loan originations decisions. So in essence, Fair Isaac holds a 90% market share in a service most lenders cannot…

Read More »

Taking a Closer Look at Lockheed ‘s Correction

We last wrote about Lockheed Martin on January 5th when the stock was hovering around $345 a share. We thought the top at $443 in February 2020 marked the end of an impulse pattern which had been in progress since 1999. Hence, it made sense to expect more weakness ahead for the stock as its…

Read More »

Dell Stock Trading in Fifth and Final Wave

Investors who were brave or fortunate enough to buy Dell Technologies during the coronavirus panic of March 2020 must be very pleased with the results. The stock is up 338% from that bottom at $25.51 and closed at $111.63 yesterday. For a profitable, growing and financially sound company like Dell, that surge is not a…

Read More »

More analyses