WILL IT BREAK NOW OR WILL THERE BE MORE DOWNSIDE FIRST?
Glencore Xstrata PLC is a leading integrated producer and marketer of commodities, operating around the world and employs in excess of 27000 people. The group's commodities comprise of metals and minerals, energy products and agricultural products. Glencore is today South Africa’s largest exporter of thermal coal and is also the world’s largest ferrochrome producer.
Gelncore Xstrata’s strong history and global scope makes it a good commodity to buy with the expectation of long-term growth. The share has proven itself as a great performer when global economic growth is strong.
Let's look at the technicals
Weekly: There is not a lot of data to go by on the weekly timeframe since the merger with Xstrata in 2013. This means that we will still be waiting for quite some time to see a structure formation take place. As things stand now, on the weekly time frame there are a number of structure options. I am however using the low and the current high based on the recent double top in order to project a possible retracement level. I believe that there will be a move to the downside to test the 38.2% retracement level and possibly the 50% level. I will be looking for reversal indications at those levels respectively.
Daily: Price is currently trading within a corrective formation. We could see a break to the upside on the current wave but I believe it is more likely that there will be a a move to the downside to test the Fib retracement levels and complete a larger correction. Ultimately I expect a break to the upside.
Gelncore Xstrata’s strong history and global scope makes it a good commodity to buy with the expectation of long-term growth. The share has proven itself as a great performer when global economic growth is strong.
Let's look at the technicals
Weekly: There is not a lot of data to go by on the weekly timeframe since the merger with Xstrata in 2013. This means that we will still be waiting for quite some time to see a structure formation take place. As things stand now, on the weekly time frame there are a number of structure options. I am however using the low and the current high based on the recent double top in order to project a possible retracement level. I believe that there will be a move to the downside to test the 38.2% retracement level and possibly the 50% level. I will be looking for reversal indications at those levels respectively.
Daily: Price is currently trading within a corrective formation. We could see a break to the upside on the current wave but I believe it is more likely that there will be a a move to the downside to test the Fib retracement levels and complete a larger correction. Ultimately I expect a break to the upside.
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