The Glencore stock price is up this Friday after Morgan Stanley indicated that investors in the mining company could be up for “outsized returns” due to record prices on coal.
According to the bank, supply constraints could persist through the first half of 2022, preceded by robust demand through the winter months. Morgan Stanley has placed a price target of 360p on the Glencore stock price, which provides some room for an uptick from the current price of 333p.
The Glencore stock price is up 0.1% as of writing this Friday.
The daily chart reveals a large ascending triangle, with the price already breaking above the triangle’s upper border. However, the resistance barrier at 342.10 has continued to stall further advance on the stock. This level must be uncapped for the measured move from the triangle to run its course towards 405.20 (26 February 2018 and 11 June 2018 highs), taking out 357.35 (8 April 2019 high) and 385.60 (23 April 2018 and 25 June 2018 highs) along the way.
On the flip side, if 342.10 holds firm and eventually leads to a breakdown of the triangle’s upper boundary at 334.75, 319.70 will become visible. Below this level, 302.40 and 291.20 are additional targets that come into play if the decline is extensive. This scenario invalidates the triangle’s breakout move.