This Lead Producer Is Poised to Rally Further: My New Price Targets

Teck Resources TECK is a leader in the production of lead and a significant producer of specialty metals such as germanium, indium and cadmium. The price of lead looks ready for an upside breakout so let's check out the charts.

In this monthly bar chart of lead futures, below, I can see that prices have risen the past 13 years. An upside breakout from here is what I am anticipating. 

Now let's check the stock price of TECK.

In the daily bar chart of TECK, below, I can see that the shares started an upside move in March. TECK now trades above the rising 50-day moving average line and above the rising 200-day moving average line. 

The On-Balance-Volume (OBV) line has firmed since January and tells me that buyers of TECK have been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but going through a "corrective phase" currently.

In the weekly Japanese candlestick chart of TECK, below, I can see that prices have broken out on the upside from a large two-year consolidation pattern. Prices are trading above the rising 40-week moving average line. 

The weekly OBV line shows us a steady rise over the past three years. The trend-following MACD oscillator is in a bullish alignment above the zero line.

In this daily Point and Figure chart of TECK, below, I can see an upside price target in the $64 area.

In this weekly Point and Figure chart of TECK, below, I can see a price target in the $76 area.

Bottom-line strategy: On March 20 I recommended that "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."

Now traders should continue to hold those previously recommended purchases. Risk to $47 now and $64 and $76 are my new price targets.

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