The Anglo American share price has risen 3.01% this Monday, as recovering metal prices continue to boost mining stocks. Monday’s move has short Anglo-American to the top of the gainers’ standings on the FTSE 100.
Anglo American accounts for 40% of the world’s platinum supply. Platinum prices had been in correction after posting all-time highs in May 2021. The Fed’s plan to start tapering its QE program led to a US Dollar surge, sending the prices of non-yielding metals crashing. The Anglo American share price action followed in a correlated manner, shedding nearly $800 in two months.
The recovery in the shares of Anglo American follows Friday’s strong showing in platinum prices. Marginal gains on Monday have ensured that Anglo American share price continues the recovery move.
Anglo American Share Price Forecast
The daily chart reveals the presence of a large symmetrical triangle. Following the confirmation of the double top of 4/12 August and the completion of the measured move, the price is attempting to close the bearish gap of 19 August. Monday’s move needs to break resistance at 3093.5 (5 May/11 June lows) to complete the gap closure and retest the neckline at 3201.5. A further ascent targets 3315.5, with 3455.0 and 3509.0 (10 May high) lining up as potential upside targets before the triangle’s upper border comes under a challenge from the bulls.
On the other hand, a decline following the rejection of price at 3093.5 opens the door for a test of 2999.00. This new support must give way before the triangle’s lower border faces a test around 2800.0.