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by Darius Anucauskas

Can Anglo American Stock Move To The High of 2019?

After reversing to the upside in the end of August of 2019, the Anglo American Plc stock (LON: AAL) managed to recover most of its losses made during a sharp decline between the beginning of July and mid-August of the same year. But we can see that from around mid-December, the share price is struggling to move above the 2216.50 mark. So in order to examine a further move higher, a break of that barrier would be needed. The upside idea is still supported by the fact that AAL continues to balance above its medium-term term tentative upside line, drawn from the low of August 23rd. Given all what was said above, we will take a cautiously bullish approach, at least for now.

If eventually we see a break above the 2216.50 barrier, such a move would confirm a forthcoming higher high and more buyers might be stepping into the action. The price may then travel to the 2237 zone, a break of which could open the door for a push to the high of July 23rd, at 2284, which might provide additional resistance. Slightly above it lies another potential resistance area, which may get tested and that is the 2293 level, marked by the highest point of 2019.  

We notice that our oscillators, the RSI and the MACD, are on a slight decline. Although both indicators are pointing a bit lower, still, the RSI is above 50 and the MACD is above zero. At this point in time, we will not put too much emphasis on both, but instead, wait for a much clearer sign of a possible directional move.

Alternatively, if the aforementioned upside line breaks and the price falls below the 2102.50 mark, which is the lowest point of January, this could spook potential new buyers and could force some of the existing ones to liquidate a few of their positions. We will then target the 2037.50 obstacle, which if broken could send AAL into a further freefall, possibly aiming for the 1996.00 level. That level is the lowest point of December and almost coincides with the 200-day EMA.

Anglo American daily

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