glencore

Glencore Share Price Forecast as Commodities Rebound

The Glencore share price is rising today helped by the strong commodity prices and the company’s carbon capture deal. It has risen by more than 2.45%, making it the best performer in the FTSE 100. Other commodity companies like Antofagasta, Anhlo American, and BHP Group have equally done well.

What happened: After days of consolidation, commodity prices surged after the latest US consumer price index (CPI) data. The headline consumer price index surged to 2.6% in March, the fastest pace since 2018. This performance was due to the relatively higher prices. 

While the CPI was above estimates, analysts believe that the Federal Reserve will not intervene and hike interest rates. Indeed, the dollar index and the US Treasury yields declined after the CPI numbers. This is usually a positive thing for commodities and miners like Glencore. Indeed, the Bloomberg Commodity Index has jumped by more than 0.60%.

The Glencore share price is also rising after the company reached a deal with China Huaneng Group on carbon capture program in Australia. The firm’s CEO said:

“This project is vitally important because it can scale up to support the reduction of Scope 3 emissions from the use of fossil fuels across a broad range of industrial sectors.”

Glencore and other coal mining companies have been under pressure from environmentalists because of the carbon they produce. The firm has pledged to be carbon neutral by 2050.

Glencore share price outlook

In my last article on Glencore, I mentioned the bullish flag pattern that was happening on the daily chart. I predicted that the stock would continue rising and possibly rise to 310p. That did not happen as the stock remained in a consolidation mode because of the relatively lower commodity prices. 

Today, the stock has already moved above the bullish flag pattern and is being supported by the short and longer term moving averages. Therefore, in my view, the GLEN share price will keep falling as bulls attempt to move above the YTD high at 310p. A move back to the flag pattern will invalidate this trend.

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