The Anglo American share price has had a strong start of the year. The AAL share price is trading at 3,365p, which is about 12.68% above where it started the year at. It has jumped by more than 43% above its lowest level in September last year.
Anglo American is a leading mining company that deals with some of the most important metals in the world. It mines metals like copper, diamonds, coal, nickel, manganese, and iron ore.
In 2021, the company divested most of its South African coal business to a separate company known as Thungela Resources. Ironically, the strong coal prices have helped the Thungela share price has done better than AAL.
The company’s share price has done well this year for two main reasons. First, fears of the Omicron variant and its impacts have been relatively unfounded. While the illness is spreading fast, its symptoms and death rates are a bit low. Therefore, analysts expect that demand for metals will be strong as the economy rebounds.
Second, and most importantly, the prices of key commodities have done well this year. The copper price is approaching its highest level in 2021. Coal prices has also jumped after Indonesia warned that it could halt exports. This explains why other companies with coal operations like Glencore have done well this year.
Anglo American share price forecast
The four-hour chart shows that the Anglo American stock price has been in a strong bullish trend in the past few months. The stock managed to move above the key resistance level at 3,263p this year. It also moved above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has been supportive.
Therefore, there is a possibility that the stock price will keep rising as bulls target the key resistance level at 3,500p. This view will become invalid if it moves below 3,263p.