ThyssenKrupp manufactures industrial components. The company produces flat rolled and cast steel, automobile parts, elevators and escalators, machine tools, bearings, nonferrous metals and plastics, develops and manages real estate, and designs and constructs factories.

From a fundamental viewpoint, the group is in a bad financial situation. Analysts have recently downgraded their forecasts for EPS to €-0.32 ; only in 2013 the group might record a net profit. In 2012 the debts’ situation could double, according Thomson Reuters’ estimates.

Graphically the share is testing historic low levels, tested in 2008. The share is trading in a strong bearish trend ; since January the share fell 50% to 11.5 EUR. The moving averages are trending down and are still above prices, thereby stopping any rebounds.
The actual zone could play as stepping stone for a solid technical rebound, or push the bearish trend’s continuation. For this reason we suggest to take a short position if the share breaks out the 11.5 EUR technical support. In this case new low scenario could be opened towards 8.5 EUR.
Contrariwise a break out of 13 EUR pivot point, could lead a strong bullish trend with a return towards 15 EUR.