Glencore has had a sterling run from the March 2020 bottom at R22,54.
The bull run ran out of steam at R105,94 and is currently trading in a sideways consolidation.
From an Elliott Wave perspective, sideways consolidations are normally triangles, especially in a fourth wave position after a strong third wave.
The key level to watch is R79,20 and a break below this...
Check out the price of Glencore in USD. It's basically flat. How come? Their business is in USD and their business is booming. Trading will keep doing incredibly well, Coal is on fire (check out Whitehaven a pure play in OZ). It trades sub 5x EBITDA, yield close to 5%, and could be debt free in 12 months... No brainer buy in my mind.
Glencore reached our previous target and passed it, currently back tracking I think Glencore next support is @R68/R65. Where the bulls might take charge.
JSE:GLN may be pulling back to the R80 area of value. For holders, it'll. be good if it can find support there. Otherwise it could be the beginning of its declining phase, that will be bad for holders.
Glencore put in a double top back in March and April and since price has fallen 28%. Looking at Fib levels on the weekly chart price has now retraced 50% and has put in a hanging man candlestick on the weekly chart. The RSI is also dropping along with volume - making a short set up lucrative for the coming days/week.
Couple this with the fact that the UK 100 has...
JSE:GLN sins are finally catching up with the share price in the JSE, after admission of guilt in US & Europe. The stock was weak last week, it's trading below key MAs. I expect JSE:GLN to continue to push lower, resources stocks are weak, there's enough downward momentum in the sector, that can help JSE:GLN to break the horizontal support.
Glencore has held up well and been a decent performer over the recent bear market. However the chart looks like this trend could be about to reverse. Double top here on the daily with a potential head and shoulders pattern forming. Decent R:R ratio.
JSE:GLN is showing downward momentum with the stochastic, MACD and EMA's all crossing in a downward direction. The price gapped down this morning which kicked us into a short position.
This analysis is made for the class Principles of Financial Managment.
This company is dedicated to the commodities market, this market during the last months had have an important increase 170% since last year (WorldBank.com) so it is expected a pullback for the market.
If you want to invest in Glencore or another commodities company,I would wait for the pullback.
Late last week on the trading desk, I presented a technical chart highlighted my perspective of the monthly chart for Glencore relative to Anglo American Plc on the London Stock Exchange (LSE), with the comment as follows:
The relative monthly chart for GLEN vs AAL is suggesting the potential for a long-term shift, where GLEN could outperform AAL.
I've...
JSE:GLN is showing signs of downward momentum based on the indicators of our momentum strategy.
The EMAs crossed in a downwards direction yesterday while the stochastic both crossed downwards the day before.
I think we could see a move down towards the previous support area at around 5780
Small bull flag forming on GLN and looks like it is going to confirm today. I am looking for a move to R70 and then R72 as second target.
Trade ideas are my own and not financial advice.
We have a nice ascending triangle pattern on the stock. Waiting for a close above The R64.85 level. Then I will start building my position with a stop loss at R57.23
Upside price momentum supports the bullish trend.
A price action above 6100 supports a bullish trend.
Profit target: 6750
Stop-loss: 6050.
The price action remains close to the lower range of the linear regression channel - which increases the likelihood of a mean reversion trade.
RSI leaves enough room for further upside potential.
