JN_Wealth_Management
Short

Anglo American - Bull run over?

LSE:AAL   ANGLO AMERICAN PLC ORD USD0.54945
SELL – ANGLO AMERICAN (AAL)

Anglo American PLC is a mining company. The Company has a portfolio of mining operations and undeveloped resources with a focus on diamonds, copper , platinum group metals , and bulk commodities .

Fundamentals
Anglo American recently delivered an impressive set of half-year results, yet the share price has fallen significantly in recent days. The company underwent a radical restructuring plan in 2013 and this had paid of handsomely with the shares appreciating over 900% since the 2016 lows. The increased concern over trade wars between the US and China has impacted the share price considerably in recent days with the shares falling over 20%. This could be the start of a deeper correction.

Best Broker Target Price: 2900p (JP Morgan Cazenove 05/07/2019)
Worst Broker Target Price: 1200p (Liberum 28/02/2019)

Technical Analysis
Anglo American has moved sharply lower in recent weeks, breaking a key trend support line that has been in place June 2017. The horizontal support at 1870p has also given way following the gap lower on the week beginning 5th August 2019. This completed a double top formation and suggest further downside will be seen over the short to medium term. The targets are the 38.2%, 50%, 61.8% & 78.6% Fibonacci retracement levels from the lows in 2017 to the highs in June 2019.

Recommendation: Sell between 1800-1900p
Stop: 2135p
Targets: 1625p, 1465p & 1240p
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