Anglo American Plc: Absolute Unwind + Relative Weakness

The full note was published this morning on our client platform.

On 19 January I shared (with our clients) my technical perspective on the share, highlighting what I assessed to be an overbought rating with the potential for the share to retrace it’s recent strong upward move. The subsequent price action saw the share trending toward the highlighted trend line resistance with a print between 76500c and 77000c, followed by a short term sideways consolidation and a bearish reversal from 77318c to a low of 69800c, a 9.7% decline.

Further to the analysis, a review of the share relative to the Top 40 Index note the 14-month Relative Strength Index (RSI) shifting to a ‘neutral’ rating, from ‘overbought’. A breach of the 50 level on the monthly RSI may suggest further relative weakness and a shift in portfolio allocation from neutral to underweight.

Also noted is the relative ratio having been rejected at the prior supply zone.

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