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Glencore vs Anglo American – P3 – Charts
Anglo American (AAL)
Source: CMC Markets, 9 August 2018
After reaching a peak of 1948p on 7 June, Anglo American shares have seen a sharp fall in mid-June, followed by a rebound from the support level of 1580p. Shares have touched this support level six times since the beginning of the year. More recently, shares have started trading in a range, touching the resistance level around 1750p six times since late June.
Will Anglo American return to June highs of 1948p (+16.5%) or fall to July lows of 1580p (-5.5%)?
- Downtrend in June on the back of global trade war concerns.
- Trading in a 1580-1750p range in July.
- MACD still negative, but moving higher (moderately bullish signal).
- Momentum is getting stronger (supporting the uptrend).
- 200-day Moving Average support around 1654p.
Broker Consensus: 48% Buy, 36% Hold, 16% Sell
Bullish: Jefferies, Buy, Target 2400p, +43% (26 Jul 18)
Average Target: 1853p, +10% (9 August 18)
Bearish: Liberum, Sell, Target 800p, -52% (1 Jul 18)
Pricing data sourced from Bloomberg on 9 August 2018. Please contact us for a full, up to date rundown.
Glencore (GLEN)
Source: CMC Markets, 9 August 2018
Glencore reached a peak of 416.9p on 29 January after a prolonged December rally that mirrored other Miners, but the uptrend stalled and lost strength in Q1 2018. On 3 July, Glencore share price fell 8.1% on the news of a US department of Justice investigation of money laundering activity in Africa and Latin America. Company shares then found a support around the 308p level, bouncing from it six times in July-August period. Since then, shares have been trading in a narrow range.
Will Glencore return to 2018 highs of 416p (+32.5%) or fall to June 2017 lows of 275p (-12.4%)?
- Sharp fall in July following announcement of US investigation into company.
- Consolidation around July 2017 lows; trading in a 308-337p range.
- Stochastics indicator breaking below MACD (a bearish sign).
- Bearish cross by Directional Indicators.
Broker Consensus: 77% Buy, 20% Hold, 3% Sell
Bullish: NOAH Capital Markets, Buy, Target 782.37p, +149% (29 Jun 18)
Average Target: 435.8p, +38% (9 August 18)
Bearish: Morningstar, Hold, Target 250p, -20% (4 Jun 18)
Pricing data sourced from Bloomberg on 9 August 2018. Please contact us for a full, up to date rundown.
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Prepared by Michael van Dulken, Head of Research
