Glencore Share Price Forecast: Is GLEN a Good FTSE 100 Stock?

Glencore share price has made a steady recovery in the past few weeks even as concerns about a global recession waned. The GLEN stock rose from a low of 435.90p to a high of 488p. This price is slightly below August’s high of510p. It has been supported by the soaring coal prices even as other commodity prices retreat.

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Soaring coal prices boost Glencore

Glencore is a leading mining and trading company that has operations around the world. It is also one of the top coal mining companies, making it one of the top beneficiaries of the ongoing crisis in Ukraine. In its most recent results, the company said that its average coal price averaged $277 in the first half of he year from $98 in 2021. 

Many European countries have been forced to turn on their coal plants after Russia’s decision to halt gas shipments to the region. As a result, the prices of thermal coal jumped by more than 120% in the first half of the year. As the winter season approaches, demand for coal is expected to keep growing. 

Soaring coal prices helped push its segment revenue to over $19.57 billion from the previous $9.4 billion. Its total EBITDA also rose to over $8.9 billion. Therefore, while the prices of other commodities has fallen, there is a likelihood that coal prices will help to offset it. Spot physical coal price rose to a record high of $436.71 on Friday.

The biggest concern for Glencore share price is that key commodities in its portfolio like copper, zinc, and nickel have been in a downward trend. This performance happened as fears of a recession rose.

Glencore share price forecast

The four-hour chart shows that Glencore share price dropped to a low of 436.50p on September 1. Since then, the stock has made a slow recovery that has seen it retest the important resistance at 500p. The shares have moved above the 25-day and 50-day moving averages. At the same time, the Awesome Oscillator has moved above the neutral point. 

Therefore, the stock will likely keep rising as bulls target the key resistance level at 512p. A move below the support at 480p will invalidate the bullish view.

Glencore Share Price