Glencore is a multinational corporation that produces, markets, stores, and transports minerals and energy produces. Its shares are listed in the United Kingdom and South Africa and is about to release its Q4 2020 earnings early next week.
Its stock price recovered dramatically after the April 2020 dive in global stock markets. Helped by rising commodity prices, Glencore’s share price benefited from the enthusiasm seen in the equity markets.
When Does Glencore Report Q4 Earnings?
Glencore will release its Q4 2020 earnings on February 16th 2020.
Market Expectations from Glencore’s Earnings Statement?
The market expects revenues to drop by over 23% in the last quarter of 2020, with the median estimate of $164.91 billion. Any surprise here, given the sharp rise in the price of raw materials and other commodities, should be enough to move the stock market. Glencore is a dividend-paying company and its share price is up 174% in the last five years and over 16% in 2021 so far.
Glencore Shares: Technical Analysis
The technical analysis perspective offers a mixed picture. On the one hand, the price continued to rise and kept the series of higher highs and higher lows typical in strong bullish trends. On the other hand, the recent price action seen in the last couple of months indicates a possible head and shoulders pattern – a reversal pattern pointing to lower levels.
However, if we are to pick one of the two scenarios, the bullish scenario looks more appealing for a few reasons. First, the series mentioned earlier reinforces the ongoing trend. Second, in a head and shoulders pattern, the price rarely exceeds the highest point in the left shoulder, projected over the right shoulder.
Glencore’s price just did that and now consolidates below the key 280 level – a pivotal area. In other words, it puts pressure on the highs, building energy, and likely to continue to consolidate until next week’s Q4 2020 earnings.
What Is the Outlook for the Glencore Share Price?
Glencore recently announced that its copper and coal production fell recently, but still it was able to meet guidance. The outlook for Glencore shares remains constructive as long as the price does not break the higher lows series. A breakout above the 280 level may open the gates to a more sustained move especially considering the raw materials and commodity prices’ evolution in 2021 so far.