Anglo American should undergo some profit-taking after the rebound in recent sessions.

Regarding the financial situation, we note the high level of debt. We also note the recent difficulties and losses recorded in the previous exercises. Revisions on sales show a downward trend during the past 12 months.

From a technical viewpoint, the proximity of the GBp 1635 medium-term resistance limits the upside potential on the stock. The uptrend in the short term could be stopped by this level and prices could decrease in the coming sessions. Technical indicators also show an overbought situation that reinforces this bearish scenario. Thus, there is a higher downside potential than upside.

The contact with the GBp 1635 resistance in the coming sessions will represent an opportunity to take a short position on the stock. A movement of consolidation could return the stock towards the GBp 1519.5. It's important to set a stop loss above Gbp 1635 because the crossing of this level would invalidate our scenario.