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Copper's H&S Top Doesn't Bode Well For Miners

Published 08/21/2019, 01:10 AM
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Anglo American Chart

A potential head and shoulders top pattern has been forming on copper prices since August 2018. With China continuing to show signs of a slowdown, weaker copper prices underline global growth concerns and will only add to the negative sentiment if they break lower. Of course, this will have a material impact on copper miners which have also come under pressure in recent weeks.

One stock of particular interest is Anglo American (LON:AAL) which is listed on the FTSE 350. Classified as a diversified mining company, its three largest commodities are coal, platinum and copper which account for around 68% of its entire business.

Anglo American (AAL): Top 5 Revenue Streams

  • Coal: 28%
  • Platinum: 21%
  • Copper: 19%
  • Iron Ore: 14%
  • Nickel: 6%
  • Coal prices are within an established downtrend, platinum is under pressure and copper is on the cusp of breaking key support. Put together, we’re keeping a close eye on Anglo American (AAL) for potential shorting opportunities. We take a look at key levels within today’s video.

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