The Glencore share price has been moving sideways recently as investors watch the performance of the commodities sector. GLEN is also trading at 368p as investors reflect on the recent decisions by the company’s management. It is about 8% below the highest level this year.
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Is GLEN a good investment?
Glencore is a leading commodity mining and trading company that is valued at more than $65 billion. The company deals with all types of commodities, including oil, zinc, nickel, and copper. It is also engaged in the agricultural commodities industry.
Glencore share price has jumped sharply this year as the demand for these commodities has risen. Precisely, the stock has jumped by more than 40% this year, outperforming some of the biggest mining companies like BHP, Rio Tinto, and Antofagasta.
The main reason for this rally is that Glencore is one of the biggest coal dealers in the world. Therefore, the company’s business has done well as investors reflect on the rising coal prices. And this trend will likely continue in the coming months. For example, there are estimates that Texas will face significant power shortages in the coming months.
Meanwhile, Glencore is seeing to become a bigger player in agricultural commodities. Last week, the company announced that it was seeking to expand its agricultural trading business in the Americas and Australia. This expansion will likely happen through small acquisitions. So, what next for the Glencore stock price?
Glencore share price forecast
The daily chart shows that the Glencore share price formed an ascending triangle pattern a few weeks ago. The upper part of the triangle was at 337p. Therefore, since an ascending triangle pattern is usually a bullish sign, the stock managed to break out higher recently. It then soared to a high of 400p and then made a pullback. This pullback is known as a break and retest pattern.
Therefore, there is a likelihood that the stock will bounce back in the near term. If this happens, the next key scenario will be where the stock surges above 400p.