Glencore, headquartered in Baar, Switzerland, is one of the world's leading integrated producers and marketers of commodities. Glencore has worldwide activities in the production, sourcing, processing, refining, transporting, storage, financing and supply of metals and minerals, energy products and agricultural products. On the basis of the current prices and the latest earnings per share estimates from analysts, Glencore is part of the cheapest stock in the industry. This valuation of the company suggests the preservation of technical levels being tested.

According to Thomson Reuters consensus from the latest estimates of analysts, the share is trading, on the basis of the current price, 8.2 and 6.77 times the expected results for the current year and the following year. In terms of enterprise value, that is to say the capitalization of the group plus net debt, the company is worth 0.28 times its sales. Except in case of strong downward revisions of earnings estimates, these low valuation levels theoretically limit the potential fall-back.

In the long-term, the share has a bearish trend. Bit it has rebounded on its GBp 293.6 support in June and is in an uptrend now. The stock is currently testing its GBp 333.3 resistance. A breakout of this threshold would be a bullish signal. Moreover, 20-day moving average is increasing again and is going toward 50-day moving average.

Consequently, active investors can take a long position in Glencore and aim a return toward GBp 366.9. A fall below 20-day moving average would invalidate our trading strategy.