Glencore New down leg in sight

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By :  ,  Financial Analyst

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, 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

Related tags: FTSE 100 Equities

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