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Glencore Share Price: Upside Potential Intact Despite Correction

The Glencore share price is trading 7.19% lower this Thursday, opening with a downside gap on another bearish day which has been tough for UK mining stocks. This follows similar declines that have seen the mining stock lose 6.4% since hitting the highs at 513p. 

Despite the shock drop, which is more of a correction after the stock’s advance from the 15 July low at 395p, several institutional analysts still believe the stock has excellent upside potential. Analysts at Barclays and RBC Capital Markets believe that the Glencore share price has an upside potential of 29.7% and 11.5%, respectively, as revealed in their latest analyst notes.

The Glencore share price had a stellar month in August, as the stock rode high on its 1st half 2022 earnings that blew market expectations out of the water after coal prices rose. Investors were granted dividend payments of up to 4.5 billion dollars, prompting heavy demand for the stock. Having hit the peak at 513p, the price is now in an adjustment as the company sorts out dividends and investors also start to bank profits made from the latest bull run.

Glencore Share Price Forecast

The steep decline in the Glencore share price is contending with the support at 440.45 (25 April, 12 May and 2 August lows). A successful breakdown of this pivot creates a pathway to the 424.55 support mark. If the bulls fail to defend this support level, the bears would have access to the 410.35 price point, where previous lows of 20 January and 24 February 2022 are found. Below this level, 398.90 could become an additional pivot if there is further price deterioration. 

On the flip side, access to the pivots mentioned above will be blocked by a bullish bounce on the 440.45 support level. This move will allow for a push to the 29 June high at 471.60. Additional targets to the north at 493.85 (16 June and 30 August 2022 highs) and 513.05 (11 March high and 26 May low) become available if the bulls succeed in uncapping the 471.60 price barrier. 

Glencore: Daily Chart