In line with a positive view of the GYX Industrial Metals we have noted RIO, BHP, and FCX among others with charts breaking out of bullish patterns. Add TECK to the list this month if it can close December in the current condition.
The weekly chart shows it above the neckline of a bullish looking pattern, which would theoretically measure to around 35 if the breakout holds.
The monthly chart gives more perspective, both positive and negative. The positive is that the pattern above (shaded here) is actually a right side shoulder to a bullish Inverted H&S. The negative is that the price has not exceeded the H&S’s neckline. If however, TECK should get above this neckline and hold it the measured target is around 47.
A safer play would be to wait for a confirmed breakout and any back filling to turn the neckline into support that may take place (using a failure of the neckline as a ‘stop’). A portfolio manager with a bullish view on the sector could take a position here and plan to add if it fades back to 25. Stop loss – if applicable – can be below 23 (strict) or 20 (much more lenient).
For my purposes I am portfolio balancing and sector rotating. TECK has a place for me and I’ve taken an initial position to hold as long as the metals/materials view remains favorable and/or the chart remains intact.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.