Glencore Technical Analysis

Friday, 6th September 2019 11:10 - by Rajan Dhall

As basic material prices fell due to the trade war between the US and China. Glencore have felt this weakness like Kaz Minerals, BHP and others in the UK.

Now prices are recovering somewhat there has been a retracement noted in their stocks but how hopeful can we be that it will continue?

Last time the US and China had talks it seemed they ended well but after the G7 meeting it all kicked off again with both sides slapping tariffs on one another. This time out I think the markets are once again getting carried away by the reports of another meeting next month. Having said that nobody knows if the good vibes will continue to I wanted to map out the levels.

On the weekly chart below, the share price has bounced off the 230p area and is looking to move higher to test 273p. We are not out of the woods yet as in the short term price is still making lower highs and lower lows. On the left-hand side of the chart, the volume profile is showing the mean value area stands at 317p. If the positivity continues this could be the next area of price consolidation. 

Taking a closer look, the daily chart below is showing the downtrend is starting to stall. The volume histogram at the bottom is showing that selling volume is slowing. If 254p is taken out then we can confirm that there could be a change in sentiment. This would be the target of 317p mentioned above a more likely target. Either way, keep an eye on the base metal and trade war news sites as it is key for this trading idea and as always be careful with risk as anything can happen with Trump around. 

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.