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Pre-Market Trading Plan. If you're a short term/active trader, this is how you could approach Glencore. The share has had a strong move off the lows of 9230c (16 March), testing a high of 11113c during yesterday's session and closing at 11055c. The 1-month advance leaves the share with short term 'approaching overbought' rating while also settling in the middle of the 50/61.8% Fibonacci retracement zone as well as at the prior breakdown level. The following is a price action scenario: (1) a print above yesterday's highs, pushing the share into ultra short term overbought territory. Any failure to hold the these highs (dark cloud cover) or a failure to hold the level at the 61.8% Fibonacci retracement at around 11216c may be a signal that the short term upside expansion has lost momentum and may be due a bearish reversal. On this basis, my 'best probability' selling range is above 11250c up to approximately 11370c. Note that we may see an overshoot on the upside. The downside target would be the 10750c range. Time Stop: Wed, 03 May 2023.
TRADING LEVELS:
Entry: 11250c
Target: 10750c
Stop-loss: 11610c
Pre-Market Trading Plan. If you're a short term/active trader, this is how you could approach Glencore. The share has had a strong move off the lows of 9230c (16 March), testing a high of 11113c during yesterday's session and closing at 11055c. The 1-month advance leaves the share with short term 'approaching overbought' rating while also settling in the middle of the 50/61.8% Fibonacci retracement zone as well as at the prior breakdown level. The following is a price action scenario: (1) a print above yesterday's highs, pushing the share into ultra short term overbought territory. Any failure to hold the these highs (dark cloud cover) or a failure to hold the level at the 61.8% Fibonacci retracement at around 11216c may be a signal that the short term upside expansion has lost momentum and may be due a bearish reversal. On this basis, my 'best probability' selling range is above 11250c up to approximately 11370c. Note that we may see an overshoot on the upside. The downside target would be the 10750c range. Time Stop: Wed, 03 May 2023.
TRADING LEVELS:
Entry: 11250c
Target: 10750c
Stop-loss: 11610c