In the last month, ERO Copper (ERO.TO) has climbed 105 spots in the SIA SIP/TSX Composite Index report, including yesterday’s gain of 11 spots to 16th place. Ero has returned to the Green Favored Zone from a dip into the red zone and had reached its highest ranking since last July.
For over a year, ERO Copper (ERO.TO) has been under accumulation, steadily advancing in a rising channel of higher highs and higher lows. In the last two weeks, accumulation has accelerated with the shares breaking out over their 2019 peak to new all-time highs on increased volume and completing a bullish Ascending Triangle pattern to signal the start of a new advance.
Based on measured moves, potential upside resistance tests appear near $31.50, $38.00, the $40.00 round number, and the $40.50-$41.50 area. Initial support appears near $25.00 where the recent breakout point and a round number converge.
A major breakout is underway in ERO Copper this month. Building on an April Double Top Breakout, the shares have blasted through $25.00 in May overtaking a previous peak dating back to 2019, and completed a bullish Spread Double Top pattern, and carrying on upward, all signs that a new upleg is underway within a primary uptrend that has been in place for over a year.
Vertical and horizontal counts suggest potential upside resistance may appear near $31.15, $33.10 or $39.50 on trend. Initial support appears near $26.60 based on a 3-box reversal, then the $25.00 breakout point.
With a perfect SMAX score of 10, ERO.TO is exhibiting near-term strength across the asset classes.
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