Glencore share price: Is Commodity giant GLEN Stalling or Falling?

Summary:

The Glencore share price has found a ceiling after outgoing CEO Ivan Glasenberg doubles down on the Anglo-Swiss commodity traders thermal coal business.

The Glencore share price has found a ceiling after outgoing CEO Ivan Glasenberg doubles down on the Anglo-Swiss commodity traders thermal coal business.

Glencore PLC (GB: GLEN) finished Friday’s session down -3.45% to 309p.

Baar Switzerland-based, natural resource behemoth Glencore Plc has ridden the wave of the post-pandemic commodity boom as well as anyone. Furthermore, GLEN has added more than 175% from its March 2020, 212.55p low. Although, as commodity prices have taken a break, the Glencore share price has followed suit. Subsequently, GLEN has struggled to advance past 320p in the last three weeks.

Never one to shy away from controversy, Glencore had often made headlines for all the wrong reasons. Moreover, the multi-national materials trader started life under the moniker of Marc Rich & Co AG. And reached its titanic status under the stewardship of the infamous embargo-busting, Clinton-pardoned maverick of the same name.

Therefore, investors were unlikely surprised when GLEN stepped in to acquire Anglo-American and BHP Billiton’s 66.6% stake in the Columbian Cerrejon open-pit thermal coal mine. This comes despite increasing pressure for miners to clean up their act.

“We are confident we can manage the decline of our fossil fuel portfolio in a responsible manner that is also consistent with meeting the goals of the Paris Agreement, as demonstrated by our strengthened total emission reduction targets.”
Glencore CEO, Ivan Glasenberg

GLEN technical outlook

The daily chart shows the Glencore share price retreated from a robust horizontal support level at 322p on Friday. Furthermore, GLEN has now lost the support of the 50-day moving average at 317.63 and almost tested the 100-day average at 304.85.

This has left the Glencore share price at a crossroads. Hemmed in by strong resistance on the upside and supported by a significant indicator below.

However, if GLEN can breach 322p on a closing basis, it’s likely the price can advance to 2021’s two-year high of 339.40.

However, should the Glencore share price fall below the 100-day moving average, it may trigger a steeper decline. In this event, I predict an extension below 300p, towards the 21st of June low at 289.65p. Furthermore, a broader sell-off would target the 200 DMA at 263.61p, aligning with an important horizontal level of support from the March low.

Therefore, next week will prove interesting for Glencore shareholders. Although, the world appears to be in the early stages of a multi-decade commodity supercycle. GLEN may offer longs a. better entry point in the weeks ahead.