The Glencore share price is sliding today as commodity prices decline around the world. The stock is trading at 285p, which is 8% below its year-to-date high of 310p. Other commodity stocks in the FTSE 100 like Shell, BP, and Anglo American are also in the red.
Glencore news: Glencore has been in the headlines in the past few days. Last week, the company announced that Tony Hayward, the current chairman, will step aside in 2022.
And this week, the firm announced a management shakeup that will see its top traders exit the firm. They include Tor Peterson, Kenny Ives, and Nico Paraskevas. The three are heads of the coal, nickel, and copper departments.
And today, Mitsubishi, the Japanese conglomerate said that it will buy 30% of the company’s bauxite business in Australia.
Glencore share price is also falling as commodity prices retreat. The Bloomberg Commodity Index (BCOM) has declined by 0.20% as investors worry about the pace of the global recovery.
The four-hour chart shows that the GLEN share price reached a multi-year high of 310p in February. Since then, the stock has formed a small descending channel pattern. This consolidation has seen it remain at the same level as the 25-day moving average. It is along the upper side of the descending channel.
Therefore, in my view, the stock will remain in the current range in the near term. There is also a possibility that bears will start to target the lower side of the channel 271p and then bounce above 310p.