Eramet is a French multinational mining and metallurgy company. The company produces non-ferrous metals and derivatives, nickel alloys and superalloys, as well as high-performance special steels. Founded in 1880 with the funding of the Rothschild family and headquartered in Paris, today, the company is largely owned by Duval family and the French state. Eramet is a part of CAC Mid 60 index and can be traded under the ticket $ERA at Euronext Paris.
Long term, we see commodities in general and metals in particular strongly turning up. In consequence, company like Eramet should see strong support in the overall bullish market. Therefore, investors can be looking to buy Eramet in order to diversify their portfolio by indirect investment in rising metal prices.
In the initial article from Septmber 2021, we have explained the huge potential for prices to rally. Indeed, the market has advanced towards March 2022 highs at 166. Now, we see a pullback to correct the cycle from March 2020. Hereby, investors can be using it as an opportunity to join the rally. Here, we provide an update including levels to buy.
Eramet Monthly Elliott Wave Analysis 10.22.2022
The monthly chart below shows the Eramet stock $ERA traded at Euronext. From the all-time lows, the stock price has developed a cycle higher in black wave ((I)) of grand super cycle degree towards the all-time highs on May 2008 at 669.98. From the highs, a correction lower in black wave ((II)) has unfolded as an Elliott wave zigzag pattern. It has printed an important bottom in February 2016 at 15.36. From the lows, a new cycle in wave ((III)) has already started and should extend towards 669.98 highs and even higher.
Within wave ((III)), one can see one nest in place and another one buidling up. Indeed, red wave I of blue wave (I) has ended at 167.20 highs. Then, a pullback in wave II has found support at 18.66 on March 2020. While above there, a new cycle in red wave III of (I) is already in progress. The target for wave III will be 171.13-265.55 area and even higher.
Within red wave III, one can distinguish another nest in progress. As a mattare of fact, from March 2020 lows, a cycle within black wave ((1)) of red III has ended on March 2022 at 166. From there, a pullback in wave ((2)) is still in progress and should find support in 7 or 11 swings above 18.66 lows. Then, an acceleration higher in wave ((3)) of III should take place.
Eramet Daily Elliott Wave Analysis 10.22.2022
The daily chart below shows in more detail the final stages of the black wave ((1)) and the consolidation lower in black wave ((2)) within red wave III. An impulse in black wave ((1)) has printed a top at 166 in March 2022. From there, 3 swings of blue wave (W) have ended in July 2022 at 84.45. Then, a bounce in blue wave (X) has set a connector at 108.59 in August 2022. Later, the prices have broken 84.45 lows opening up a bearish sequence. Now, one should expect more downside within blue wave (Y) towards 26.97 being 100% extension of the wave (W) to complete that sequence.
Investors and traders can be looking to buy Eramet in a pullback from 26.98-18.66 area. There, an acceleration higher in black wave ((3)) of red wave III should take place. Alternatively, one can expect a bounce in 3 waves as minimum.