Taking a look at Glencore as fears around the UK entering a recession are rising again.

Taking a look at Glencore as fears around the UK entering a recession are rising again, this would impact the FTSE 100 and as a result, its constituents who may see some huge sell-offs. Glencore has some influence on the FTSE as it is in the top 10 companies within the index based on weighting, hence, investors and traders will be examining the company from both a financial and technical perspective. Focusing on the technical aspect and simply looking at the chart, there is a possibility of a head and shoulder formation here. Looking at the red arrow, if the price was to approach the resistance of 540p (upper trendline of the mini channel), investors should be cautious as this pattern indicates that a bullish-to-bearish trend reversal is taking place. Some would consider this the most reliable trend pattern. If this was the case and if the 540p resistance was hit, we would then look at the support level sitting at 440p (bottom of left shoulder which also corresponds with the ascending trendline). A break below this level and the trendline would then face support levels at 410p followed by the key one at 395p. However, as this is a stock, these pattern formations are not always correct. Hence, a break above 540p could suggest that further upside is possible and we would then look at resistance sitting at 571p and the high of 584p. Looking at the technical indicators, MACD has just turned negative but the RSI is neutral as it reads 48.