Glencore : New down leg in sight ?

Glencore, a commodity trading and mining company, may sell its entire 73.1% stake in Zambia's Mopani Copper Mines

Charts (6)

Glencore, a commodity trading and mining company, may sell its entire 73.1% stake in Zambia's Mopani Copper Mines, which has an estimated recoverable value of 704 million dollars, reported Reuters citing people familiar with the matter.

From a technical point of view, the stock price should remain under pressure as long as the key resistance at 187.8 (overlap + Bollinger band) is not penetrated.  Prices escaped from an upward-sloping channel and have broken below a short term rising trend line in place since March low. The daily Relative Strength Index (RSI, 14) is mixed with a bearish bias. In addition, the 20/50DMAs validated a bearish cross. Readers may want to consider opening short positions below resistance level at 187.8p with 153p and 130p as targets. Alternatively, a push above 187.8p would invalidate the bearish view and would call for a rise towards 216p. 

Source: GAIN Capital, TradingView


More from Equities

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.