Trade Glencore Plc with Unum Capital
To get started, email lester@unum.co.za
This idea is based, in part, on my previous note (11 February). "Glencore Plc: Managing Risk via the Monthly Chart"
Text as per the graphic below: MEDIUM TERM VIEW. HIGH RISK BUY IDEA therefore small-than-average position sizes may apply. The share has been sold off aggressively and is in a high bearish momentum regime while also approaching an oversold range. I do NOT think that THIS is the exact low (i.e. I am expecting lower levels) however, this may be a RANGE to starting building a buy/long position with the expectation that a base starts to form over the near term followed by a potential bullish reversal. Buy at current levels or lower (traders could consider starting with a 1/3 of the position). In terms of probabilities, it's possible that the share could trade down to the 7000c range (this is NOT a prediction, but merely a probability based on candle structure, momentum etc.). Note the 7000c level coincides with the previous MONTHLY CHART breakout level. As always, traders could consider the following if/when the prices approaches the target: bank/take profit, partially scale out, adjust the stop-loss to protect profits. Time stop: 03 October 2025.
Trading Levels
Entry: 7140c
Target: 8300c
Stop-loss: 6440c
Previous Post: "Glencore Plc: Managing Risk via the Monthly Chart"
The monthly chart is a useful, and often overlooked tool for investors and traders looking to manage risk. In 2023, our analysis highlighted 3 aspects which alerted traders to downside risk over the medium term: (1) The bearish MACD crossover (2) the channel resistance and (2) the breakdown in the 14-month RSI.
At the time, clients were exposed to the following view via the monthly chart at a price of R104. (Current level = R79)
Current View (Long Term): Weak and in a downward trend; Looking to re-test the previous breakout level of R70 as per the monthly chart.
Last Price: 7978c.
Lester Davids
Analyst: Unum Capital
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