Worth A Second Look:

The Swiss-based energy and resources play Glencore since a breakout above a WEEKLY bull flag formation near 14 the week ending 1/20 proved to be a “bull trap”. Long-time readers of our work know our affinity with round number theory and the week ending 3/17 defended the 10 level very well. The daily chart below shows both the 3/15-16 sessions were below 10 intraday, but each CLOSED above it. With the 5% gap up on 3/20, it completed a bullish island reversal after the 10.4% gap down on 3/15 in double the average daily volume. This week so far is up better than 4%, and if it can generate a positive week this week would be just its second back-to-back WEEKLY gains in the last 4 months. It pays a nice dividend yield of 4.6% and with the greenback in decline since a spinning top candle on 3/8 after a spirited run from par on 2/2 this may be the wind at its back to propel this to further gains. We were WRONG and early on this name in our 2/24 Energy Note but think this name merits a second look.

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