Base Metal Roundup
I’ve been an admirer of the chart and commentary contributions of Little Joe and Andrew, in particular, so I thought it might be useful to do one for the base metals.
Here’s a roundup of a herd of base metal companies that represent a range of metals and company sizes. Sorry if I missed anyone’s favorites, I only watch mine! I am no TA guru, these are just my back of the envelope comments offered without warranty and with the standard disclaimer that none of the following should be construed as investment advice or substituted for your own due diligence!
Breakwater Resources (BWR.TO, BWLRF), Zinc
stockcharts.com[w,a]daclyyay[pb50!b200][vc60][iUb14!La12,26,9]&pref=G
Breakwater has been hugging it’s 50 day for the past couple of months from above and below. Right at the moment, it looks like a possible double top at .80, but I suspect that it instead of topping, it goes higher from here. I say that because that is how I’ve seen this pattern resolved in other mining stocks recently.
Canico (CNI.TO, CNIRF), Nickel
stockcharts.com[w,a]daclyyay[pb50!b100][vc60][iUb14!La12,26,9]&pref=G
Canico went from a nice run above it’s 50 day MA to leveling off and began December by crossing below it. By mid-December it was down through the 100 day MA and has been hugging that from above and below. Canico recently complete a very large (100MM+) financing which is probably putting some pressure on the stock.
Falconbridge (FL.TO, FBDGF), Nickel
stockcharts.com[w,a]daclyyay[pb50!b100][vc60][iUb14!La12,26,9]&pref=G
What a beauty! Steady on. The 50-day has been a good place to buy this stock but it hasn’t gotten as close to it on the last couple of pullbacks.
First Quantum (FM.TO, FQVLF), Copper
stockcharts.com[w,a]daclyyay[pb50!b100][vc60][iUb14!La12,26,9]&pref=G
Another swell-lookin’ chart. First Quantum is a mid-tier producer operating in Zambia and the DRC (and sniffing around Chile and Portugal). Their earnings projections for the next few years deserve serious consideration, imo. Stock looks to me like a buy. RSI hasn’t broken 50 since July and it’s getting close.
Inco (N)
stockcharts.com[w,a]daclyyay[pb50!b100][vc60][iUb14!La12,26,9]&pref=G
Boy, these charts all start to look the same after a while! Looks like a staircase to…somewhere, anyway. Also, there are rumors circulating that Inco is a potential takeover target. If we see that, I believe that would be the kind of consolidation that Coxe indicated would be a signal that the end of the “allegro”, or first of three movements in the base metals had arrived.
Ivanhoe Mines (IVN.TO, HUGO), Copper/gold
stockcharts.com[w,a]daclyyay[pb50!b100][vc60][iUb14!La12,26,9]&pref=G
Tough sledding since 15. On the bright side, the 100 day has held and the stock looks like it is getting ready to make up its mind. RSI got as low as 30 but has since rebounded back above 50. July through October is a good example of how long a stock can stay in overbought territory. MACD looks a little better too. We’ll see. Scoping study soon come.
International Barytex (IBX.V, IBYXF)
stockcharts.com[w,a]daclyyay[pb50!b100][vc60][iUb14!La12,26,9]&pref=G
While IBX is a lot lower profile than Ivanhoe, the chart has some strikingly similar characteristics. The stock went in November from soaring above it’s moving averages bounced off the 50 and then down to the 100 in mid-December, which held. RSI bounced at 30 and is just back to 50 now. MACD looking better. Investors are waiting to see IBX wrap up their deal for a large tin project in China. Rumors are that this is imminent, but you never know for sure until it’s done (of course, it’ll cost ya).
Northern Orion (NNO.TO, NOOJF), Copper and gold
stockcharts.com[w,a]daclyyay[pb50!b100][vc60][iUb14!La12,26,9]&pref=G
Northern Orion almost looked like it was rolling over in December and was testing it’s 50 day MA by the end of the month. From there, it’s bounced up to the 3.50 level and some definitely not neutral observers like Frank Holmes think it could go way higher.
Teck Cominco (TEK.B.TO, TCKBF)
stockcharts.com[w,a]daclyyay[pb50!b100][vc60][iUb14!La12,26,9]&pref=G
Long-term, the chart looks smashing. Shorter term, I can’t tell if Teck is going to drop a few more points and test the 50 or turn around here. Mr. Market will decide. RSI is not in nosebleed territory by a long shot but looks like it COULD dip more. Primarily a zinc play, Teck is notably starting to move Pogo forward, a gold project in Alaska that has some stunning grades. |
