SIACharts Logo

Commentary >

First Quantum Minerals Ltd - (FM.TO) - July 27, 2023

Bouncing back from a spring dip down into the yellow zone, Copper producer First Quantum Minerals (FM.TO) returned to the Green Favored Zone of the SIA S&P/TSX 60 Index Report earlier this month and since then the shares have gained 17.5%. In the last month FM.TO has climbed 12 positions to 4th place. For the last year, First Quantum Minerals (FM.TO) has been under accumulation, advancing in a step pattern of rallies followed by periods of consolidation at higher levels. A May correction bottomed out at another higher low and since then, the shares have been retaking lost ground. Yesterday, they broke out intraday, and a close above $37.00 would confirm the start of a new rally phase.

Initial resistance may appear near $39.00 based on previous highs, A measured move from the current trading range suggests potential upside resistance near $46.00 which is also close to the March 2022 peak, followed by the $50.00 round number. Initial support appears near $34.00 then the 50-day average near $32.00.

Since a selloff in First Quantum Minerals (FM.TO) shares bottomed out a year ago, they have been steadily recovering lost ground, establishing a recovery trend of higher lows and higher highs. Bouncing back from a May correction, FM.TO completed a bullish Double Top pattern earlier this month kicking off a new upleg that would be confirmed by a close above $36.90.

Potential upside resistance tests appear at a previous column low near $39.90, followed by the April 2022 peak near $44.95, and then $46.75 based on a vertical count. Initial support appears near $33.40 based on a 3-box reversal and previous column highs and lows.

With its bullish SMAX score increasing to 7, FM.TO is exhibiting strength against the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Related Posts

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.