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.
Today, 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.
Eramet Monthly Elliott Wave Analysis 09.13.2021
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. 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.
Eramet Daily Elliott Wave Analysis 09.13.2021
The daily chart below shows in more detail the first stages of the advance higher in wave III. From the March 2020 lows at 18.66, the initial impulsive advance in black wave ((1)) migfht be still in progress. The blue subwaves (1)-(4) have ended. While above 47.48, wave (5) o ((1)) can extend higher. Once accomplished, a correction in wave ((2)) should correct the March 2020 cycle before an acceleration to the upside within wave ((3)) of III should take place.
Investors and traders can be looking to buy Eramet in a pullback against 18.66 lows in 3, 7 or 11 swings expecting acceleration higher.