Teck Resources Is Edging Higher Towards an Upside Breakout
It looks like a good time to check out this natural resources company.
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Teck Resources Ltd TECK is a diversified natural resources company engaged in mining and mineral development, including coal for the steelmaking industry, copper, zinc, and energy.
Copper prices recently rallied on the heels of recent smelter production cuts in China, so this looks like a good time to check out a company like TECK.
In this daily bar chart of TECK, below, I can see that prices have largely traded sideways in a choppy fashion the past twelve months. Trading volume looks like it has become more active since November. Prices have rallied above the 50-day moving average line and above the 200-day moving average line.
The On-Balance-Volume (OBV) line shows some improvement since early July. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line telling me that trend strength has improved.
In this weekly Japanese candlestick chart of TECK, below, I can see a large ascending triangle formation. Prices have made higher lows the past two years while price rallies have stalled out above $45. TECK trades above the bottoming 40-week moving average line.
The weekly OBV line has been in a rising trend the past three years telling me that buyers have been more aggressive than sellers for years. The MACD oscillator has recently edged above the zero line for an outright buy signal.
In this daily Point and Figure chart of TECK, below, I can see a potential upside price target in the $62 area.
In this weekly Point and Figure chart of TECK, below, I used a five box reversal filter. Here the software gives us an $82 price target.
Bottom line strategy: Traders could use the recent pullback in the price of TECK to do some buying. Risk to $38. Add to longs on strength above $46. $62 is my first upside price target.
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