Does the rebound in Glencore shares have legs?
This share price has received a hammering, but our chartist looks beyond the gloom.
17th June 2020 08:36
by Alistair Strang from Trends and Targets
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This share price has received a hammering, but our chartist looks beyond the gloom.
Glencore (LSE:GLEN)
This share price has received rather a hammering. When we last reviewed Glencore (LSE:GLEN) in September 2019, we whimsically completed our report with the two sentences below;
"Now below 218p and travel downhill to an initial 204p looks possible. If broken, secondary calculates at a bottom - hopefully 132p."
As can be guessed, tacking this on at the very end of a 500-word report was "just" us covering ourselves in case it all went wrong.
But somehow or other, the criteria we'd given for the share price being trashed seems to have been aware of the coming pandemic and Glencore's share price duly obliged with a movement lemmings would be proud of.
In the cold light of day, Glencore actually broke our 132p, eventually opting to bounce from 110p.
The big question, obviously, is to discuss whether the current bounce can be regarded as having any integrity.
After all, our 132p ambition was broken on the initial surge downward, implying greater weakness is possible in the future.
Despite this gloomy potential, we can report the rebound appears to have legs and we calculate strength now exceeding 182p should reach for an initial 204p.
Our secondary ambition, should such a target be exceeded, works out at a rather more flamboyant 254p.
While 254p has a nice ring to it, it's worth pointing out the visual cues should such a level be attained.
Since November last year, this price level has formed a vague "glass ceiling" with the result some hesitation is very probable if the price makes such a lunge upward.
Hopefully, this time around, we shall not again curse the price by gluing our caveat to the end of this report.
Glencore needs to trade below 156p to justify a raised eyebrow as this threatens coming weakness to an initial dangerous 142p.
If broken, secondary calculates at a rather poisonous 114p, meeting the uptrend since 2016...
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of interactive investor.
All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, or interactive investor will be responsible for any losses that may be incurred as a result of following a trading idea.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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