Why it could be party time for FTSE 100 and Glencore shares
2nd November 2022 07:22
by Alistair Strang from Trends and Targets
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After a few good weeks for stocks, the charts tell independent analyst Alistair Strang to expect great things in the near future, both for the FTSE and Glencore.
It's time for our annual Big Picture glance at Glencore (LSE:GLEN), a company which has enjoyed a truly confusing 2022 with regard to its share price. However, there are early signs that some clarity of movement is coming, something also shared with (cue: sardonic drum roll) the FTSE 100.
Last week, we continually visited the FTSE, mentioning 7,180 points as a key level of interest. The UK market celebrated the start of November by closing the session at 7186.16 points.
While not substantial, this closing price is above our trigger level of 7180.17, allegedly pointing at great things for the future, along with the hope of some strength in the UK market as 2022 staggers toward the year end.
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Generally, when a price exceeds such a crucial level, the point of a historical trend break, it's party time for the next few sessions, and our wish is for the UK to enjoy the exuberance experienced by all the other major markets when they each exceeded their own pandemic trend break level.
We're now hoping for great things, hopefully not derailed by political mischief making. Apparently, we should anticipate a cycle above 7,222 points to bring an initial 7,276 points with secondary, if bettered, 7,467 points. Or as we know it in-house, it's fingers crossed time!
Past performance is not a guide to future performance
To return to Glencore Plc, similar to the FTSE, a fair amount of optimism is now present for future price movements.
Currently trading around 523p, we've a 'Jobsworth' type of requirement demanding the share price close above 525p to give early warning for the potential of the share attaining some new all-time highs.
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Our bias is to treat the immediate closing price as "close enough" as movement near term above 529p should make an attempt at an initial 538p with secondary, if exceeded, a more useful 565p.
Achieving 565p will prove important, painting a new high for the share price, and despite the visuals implying such an ambition would make a perfect price level to provide an entertaining back-test to around the 510p level.
Past performance is not a guide to future performance
However, it would be churlish not to admit Glencore reaching new all-time highs has a serious Big Picture potential as a future 696p becomes a perfectly viable aspiration.
At present, Glencore needs to break Red at 430p on the chart below to cause panic.
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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