Interactive Investor

I think this will happen to Glencore shares next

19th April 2023 07:45

by Alistair Strang from Trends and Targets

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Shareholders have been well rewarded for sticking with Glencore, enjoying healthy dividends and strong share price gains. Independent analyst Alistair Strang gives his view on what's in store now.

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Swiss company Glencore (LSE:GLEN) an abbreviation of ‘Global Energy Commodity Resources’ is a pretty core component of the FTSE 100. The company is seriously big, the UK hosting their oil & gas head offices and they’re rated as the world's largest commodity traders. 

However, given the plethora of fields in which Glencore is active, it’s actually a little surprising how relatively placid the share price has been over the last 10 years. With the company achieving a new all-time high in January this year - the share price reaching 584p - we’re curious whether some further good times may be on the horizon, especially as the share price has now broken through its immediate downtrend and appears to be on the edge of challenging its prior highs.

Trading around 498p currently, the immediate situation suggests above 501p should trigger an attempt at 525p next with secondary, if exceeded, at 579p. We suspect this shall prove quite important, once again taking the share price into “all-time high” territory where we’re able to calculate the potential of a visit to 693p as a logical Big Picture ambition on this cycle.

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Source: Trends and Targets. Past performance is not a guide to future performance.

If things intend to go horribly wrong, the share needs below 422p to trigger panic, entering a reversal cycle which should hopefully complete at 297p.

Early warning of trouble shall be the price closing below 480p, but for now, we’re inclined toward optimism for Glencore’s future.

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. 

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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