Glencore put in a double top back in March and April and since price has fallen 28%. Looking at Fib levels on the weekly chart price has now retraced 50% and has put in a hanging man candlestick on the weekly chart. The RSI is also dropping along with volume - making a short set up lucrative for the coming days/week.
Couple this with the fact that the UK 100 has had a great run recently coming off the lows with a consistent move higher. We are now however approaching all time high resistance where the market has U-Turned five times already this year. Indicating that we are in for a U-Turn back to the 200-period average. This impending reversal of the overall UK market will give strength to short positions in this market in the coming weeks. Of course, we don’t know for sure that it will reverse it could break out to new all-time highs but probabilities are in our favour. I do however foresee a bullish run for another week until price has retraced 100%.
Couple this with the fact that the UK 100 has had a great run recently coming off the lows with a consistent move higher. We are now however approaching all time high resistance where the market has U-Turned five times already this year. Indicating that we are in for a U-Turn back to the 200-period average. This impending reversal of the overall UK market will give strength to short positions in this market in the coming weeks. Of course, we don’t know for sure that it will reverse it could break out to new all-time highs but probabilities are in our favour. I do however foresee a bullish run for another week until price has retraced 100%.