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Glencore Share Price Forecast: Rangebound For Now

The Glencore share price has moved sideways in the past few weeks as investors assess the company’s performance. The stock is trading at 368p, which is a few points below its year-to-date high of about 400p. It has also risen by about 40% this year.

There have been three main catalysts driving the GLEN share price higher recently. Last week, BlueBell Capital, a hedge fund, asked the company to separate its thermal coal company. The fund argued that doing so will attract investors who are focused on ESG.

In a rejoinder, the company’s CEO said that it was in the best interest of the firm and the planet to run the business. Besides, the demand for coal will still be elevated even as the world transitions to clean energy. Also, most of the company’s biggest shareholders are supportive of the company’s coal strategy. In other words, Glencore has avoided being woke.

Second, the Glencore share price is also reacting to the strong results by Trafigura, one of the biggest commodities traders. The firm recorded bumper profits of more than $3.1 billion. Since Glencore is also a leading trader, analysts believe that its business will do good as well.

Third, the stock is reacting to the recent performance of key commodities as the Omicron variant spreads. Some commodities that Glencore mines have pulled back. 

Glencore share price forecast

The daily chart shows that the Glencore share price is trading at 368p, which is slightly above the key support at 337p. This was the upper side of the ascending triangle pattern. The stock is also trading at the same level as the 25-day and 50-day moving averages while its volume has dropped. 

The Relative Strength Index (RSI) is at the neutral level of 50. Therefore, the stock will likely remain in this range for a while as investors wait for the next catalyst.

Glencore share price