Glencore share price forecast: Is it a good buy ahead of earnings

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Glencore (LON: GLEN) share price rose for four straight days even as recession risks rose and mining companies published weak results. The shares jumped to a high of 470p, which was the highest level since June 21st.

Mining companies in trouble 

Glencore is a giant mining and trading company that has operations in key markets like Australia, China, and Chile. The company deals with vital commodities that have been in high demand in the past few months. 

For example, Glencore is one of the biggest oil traders in the world. It moves millions of barrels every day. It is also a leading supplier of coal, which has seen high demwnd following the Russian invasion of Ukraine. 

Unlike its peers like Anglo American, Glencore has doubled down on coal even after being criticised by leading environmentalists. Glencore argues that exiting the business through a spin-off or outright sale will not solve the climate crisis. 

Glencore is also a leading producer of products like copper, nickel, zinc, and cobalt. All these metals are vital in the ongoing transition from fossil fuels. 

Glencore share price has done relatively well even after the relatively weak performance by its competitors like BHP, Anglo American, and Rio Tinto. All these companies published weak results, signaling that the boom in the commodity sector is ending. 

For example, Rio Tinto’s underlying earnings came in at $8.6 billion, which was lower than last year’s $9.1 billion. Similarly, BHP recorded lower weak results as its costs remained at elevated levels. 

Glencore has done well because it does not have major iron ore assets. As such, analysts believe that the company will continue being more profitable this year because of the rising volume. In a recent report, the company said that its half-year profits will be higher than what it made in 2021. Glencore will publish its results on Friday. 

Glencore share price forecast 

The daily chart shows that Glencore stock price has made a steady recovery in the past few days. In this period, the company’s shares have managed to move above the lower side of the ascending channel which is shown in purple. It has also crossed the important 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved above the neutral level of 50.

Therefore, there is a likelihood that the stock will continue rebounding after it publishes its results on Friday. If this happens, the next key level to watch will be at 500p.

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