Anglo American Plc Price Reacts to Production Report and Move in Copper

Anglo American Plc has produced a mixed quarterly production update and is trading in a similar fashion to recent moves on copper.

Anglo American Plc Q4 2022 production update

Overall production for Anglos increased by 10% year on year (y/y), with gains largely driven from copper , which saw output surge by as much as 52% over the quarter. Diamond and coal production each added 6% in Q4 y/y, while iron ore output grew 4% over the period. Nickel and platinum production did however contract from the prior year’s comparative by 4% and 10% respectively.

The share price has been under some near-term pressure over the reporting week, with soft platinum output and a sharp drop in underlying copper prices perhaps contributing factors to the move.

Anglo American Plc (AAL: LSE) – Technical View

The long-term trend for Anglo American PLC remains up despite the near-term price correction that we have seen.

The price looks to have found gap support at the 3340 level. The stochastic is also suggesting the price to be oversold around this level.

We would like to see a strong close on today’s candle to suggest the end of the near-term correction and possible rebound to follow. In this scenario, 3700 would become the initial upside resistance target from the move, while a close below 3150 might be used as a stop loss indication for the trade.

Should the price not confirm a bullish price reversal off support, but instead move to close below the 3340 level, 3150 would become the next downside target from the move. However in lieu of the longer-term uptrend still considered to be in place, we would not look to short the potential move lower.

Anglo American Plc (AGL: JSE) – Technical View

The long-term trend for Anglo American PLC ( JSE listing ) also remains up despite the near-term price correction that we have seen.

The price looks to have found support at the 3340 level. The stochastic is also suggesting the price to be oversold around this level.

We would like to see a strong close on today’s candle to suggest the end of the near-term correction and possible rebound to follow.

In this scenario, 69630 would become the initial upside resistance target from the move, while a close below 64200 might be used as a stop loss indication for the trade. Traders would need to assess whether these risk to reward assumptions validate taking a position on the local listing of the company.

Should the price not confirm a bullish price reversal off support, but instead move to close below the 69630 level, 64200 would become the next downside target from the move. However in lieu of the longer-term uptrend still considered to be in place, we would not look to short the potential move lower.

Only on a move below the 64200- and 200-day simple moving average (blue line) would we reassess our long term trend bias on the stock.

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