- Summary:
- Glencore share price popped closer to its all-time high as investors remained fixated on the rising coal prices and the commodity supercycle
The Glencore share price popped closer to its all-time high as investors remained fixated on the rising coal prices and the ongoing commodity supercycle. The stock rose to 384p, bringing its year-to-date performance to more than 60%.
GLEN benefits by not being woke
Glencore is a major commodity miner and trader that was starting by Marc Rich. The company deals with metals like copper, cobalt, nickel, and zinc. It is also active in the energy business, both as a miner and as a trader. It mines coal and sells millions of barrels of crude oil every day. Glencore is also a leading recycler of commodities.
Glencore, unlike other commodities mining companies, has avoided the woke community that is influenced by climate activists. Instead of divesting its coal business, the company has invested more resources in it. Earlier this year, Anglo American exited its South African coal business by creating a new company known as Thungela Resources.
Glencore management has insisted that its commodities, including coal are necessary in a period when energy demand is rising. The company has also argued that divesting its coal business won’t solve the so-called climate crisis.
Therefore, the company has benefited substantially as the coal prices has surged recently. This, in turn, has made the Glencore share price a better performer than other mining groups like Anglo American and BHP.
There are other reasons why the GLEN share price has done well. For one, the price of crude oil has risen, which has helped it improve its margins. Also, other metals it mines like zinc and nickel have continued the upward momentum. Glencore does not mine iron ore.
Glencore share price forecast
In a recent report, I noted that the Glencore share price would keep rising in the near term, helped by the strong demand of coal. That happened and the company is now attempting to move to its all-time high. The shares also moved above the key resistance at 350p.
Now, it has risen above the 25-day and 50-day moving averages while the Relative Strength Index and the MACD have kept rising.
Therefore, the path of the least resistance for the stock is to the upside, with the next key resistance level to watch being at 400p. This view will be invalidated if the price moves below the key support at 350p.
