Glencore: Why aggressive traders should buy now

1 mins. to read
Glencore: Why aggressive traders should buy now

I have to admit that, as in the case with Lonmin (LMI), at one stage earlier this year I did succumb to the idea that Glencore may be no more. Instead, the share prices of both companies have reversed sharply to the upside. In the case of Glencore, the question is can it continue?

 Glencore (GLEN): Rising May Trend Channel Target Of 280p

Perhaps what is most interesting about the daily chart configuration of Glencore over the course of this summer is the way that the consolidation we have seen has actually been quite straightforward. By this it is meant that new support for the stock has come in at and above former resistance in the 170p zone, with the top of the consolidation range being seen towards the key round number of 200p. But what the latest unfilled gap to the upside through the 50 day moving average at 186p this week tells us is that rather than momentum slowing down here, it may actually be gathering strength. Therefore, for aggressive traders buying the shares ahead of any 200p break could be indicated, with a relatively tight end of day close stop loss back below this feature. In terms of what the upside could be we are looking at a potential journey as great as the top of a rising trend channel from May with its resistance line projection heading as high as 280p. The timeframe on such a target is regarded as being the next 2 months, although given the way that this stock can move it could actually be such a destination is hit ahead of time.

Glencore shareprice gathers momentum

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