The Anglo American share price gapped lower on Thursday as investors remained concerned about the spreading Delta variant. As a result, the shares tumbled by more than 10% and fell to the lowest level since July 21. Other commodity shares kike Glencore, Antofagasta, Royal Dutch Shell, and BP were among the worst-performing in the FTSE 100.
AAL stock tumbles
Anglo American is one of the biggest mining companies in the world valued at more than 39.25 billion pounds and annual revenue of about 30 billion pounds. It is also a highly profitable company that generates more than $5.6 billion in profits.
Anglo American focuses on several metals, including diamonds, copper, platinum group metals, and coal. In the past few months, the Anglo American share price has jumped sharply as investors focus on the rising commodity prices. The firm even managed to increase its payout to shareholders.
Today, however, the stock is falling sharply as investors react to the rising Covid cases in key countries. For example, China, the biggest importer of copper and other metals, has seen an uptick of cases. That has pushed the government to partially lockdown a key port.
Other key countries like Australia have also seen a surge in cases. This pushed the copper price substantially lower. As a result, the AAL shares declined more than others since it has the biggest exposure to the copper market.
Anglo American share price forecast
The daily chart is not looking good for the Anglo American stock. For one, it shows that it formed a double-top pattern at the 3,500p level. The neckline of this pattern was at 2,675p level. In price action, this pattern tends to be a bearish sign. The stock also moved to the lower side of the Bollinger Bands indicator.
Therefore, at this point, I suspect that the price will maintain the bearish trend as bears target the next key support at 2,500p. On the flip side, a move above the 3,000p resistance level will invalidate this view.