The Glencore share price is approaching its all-time high even as copper prices have plunged to the lowest level since December 21. The stock is trading at 388p, which is slightly below its all-time high of near 400p. It has jumped by 167% from its lowest level since October.
Glencore is one of the leading commodity mining and trading companies in the world. It has a storied past, which you can read in a book known as The World for Sale. The company deals with a number of metals like copper, cobalt, nickel, zinc, lead, and other ferroalloys. It is also one of the biggest coal traders in the world.
The Glencore share price has jumped sharply this week as investors watch the rising coal prices. Analysts expect that the prices will soar if Indonesia moves to temporarily halt shipments. In a note, analysts at Morgan Stanley estimated that the price of thermal coal could average about $140 a ton in the first quarter if the ban takes effect. The country wants to boost coal for its internal supplies.
Glencore is also benefiting from the rising prices of oil. Earlier this week, the OPEC+ cartel announced that it will add supplies by about 400k barrels per day in February. As a result, oil prices have held steady since then. This is notable since Glencore is one of the biggest oil traders in the market.
Glencore share price forecast
In my last article on Glencore, I noted that it was forming an ascending triangle and predicted that it will keep rising. That view was correct as the stock has risen by almost 15% since then. The stock has moved above the 25-day and 50-day moving averages. It also moved slightly above the key resistance at 380p, which was the highest level on November 26th.
Therefore, the path of the least resistance is to the upside, with the next key level to watch is at 400p. This view will be invalidated if the price moves below 380p.