Glencore Share Price Forecast: More Upside Ahead in October

The Glencore share price has rallied in the past five straight days as investors reflect on the rising coal prices. The GLEN stock is trading at 352p, which is about 15% above the lowest level in September this year. It has outperformed other commodities companies like BHP, Anglo American, and Rio Tinto. 

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Glencore news: Mining companies had a mixed September as the prices of key metals like iron ore declined. However, Glencore shares did relatively well in the month because it does not have an exposure to iron ore. Instead, the company makes most of its money selling coal.

In September, Coal prices jumped substantially as demand rose and supplies remained under pressure. This trend happened because of the relatively higher prices of natural gas, which is also widely used in electricity generation.

The demand is expected to rise ahead of winter considering that many clean energy sources like solar will see limited supplies. Therefore, as one of the biggest coal miners in the world, Glencore will likely benefit.

The situation has also been made possible by the significant underinvestments in coal energy. In the past few years, the transition to clean energy and the overall shunning of coal companies by investors has made the industry to be underinvested.

Glencore share price forecast

The daily chart shows that the GLEN share price has been forming an ascending triangle in the past few months. This week, the stock managed to move above the upper side of this triangle at 330p. On the daily chart, the shares have moved above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has tilted upwards. 

Therefore, the Glencore share price will likely keep rising as bulls target the key resistance level at 400p. This will likely happen in October 2021. On the flip side, a drop below the key support at 330p will invalidate the bullish view.

Glencore Share Price