Automotive Sector Faces $5 Billion Commodity Shock: Cost Wave Threatens Profits

Although aluminum prices have risen 1.8% in the last 24 hours, the RSI remains neutral at 49.65, and the MACD continues to stay below the signal line. News headlines pointing to cost pressures in the automotive sector may raise concerns about weakening demand. Short-term technical indicators offer no clear direction, with the 20-day and 50-day moving averages converging, supporting a sideways trend. Therefore, prices are expected to fluctuate around current levels.

Brent crude oil is trading at $101.29, down 1.76% over the past 24 hours. The RSI stands at 51.6, indicating neutral territory, while the MACD is above its signal line but hovering near zero. Although prices remain above the 20- and 50-day moving averages, providing short-term support, cost pressures in the automotive sector highlighted in recent headlines could raise concerns about weakening demand. As a result, no clear directional signal has emerged.

The news headline points to rising costs in the automotive sector, signaling negative demand or margin pressure for petrochemical and refinery companies such as TUPRS. Technical indicators already present a weak outlook: RSI at 35 is near oversold territory, MACD is below zero and, although above the signal line, momentum has not yet recovered. The price is trading below the 20- and 50-day moving averages, with a 4.6% decline from the last close. In the short term, selling pressure is likely to persist, but the low RSI level could open the door for a corrective buying opportunity.