Since bottoming out near the bottom of the red zone back in the summer, copper miner First Quantum Minerals has been working its way back up the rankings in the SIA S&P/TSX 60 Index Report. On Friday it returned to the Green Favored Zone for the first time since June after jumping 12 spots on the day and 36 positions in the last month to 13th place.
Since bottoming out in late July, First Quantum Minerals (FM.TO) shares have been building a base for recovery. A new uptrend of higher lows has been established, and support has moved up toward $22.50 from $20.00
On Friday, FM.TO broke out over $25.00, an encouraging sign that signals the start of a new upleg. A close above $27.50 would complete a bullish ascending triangle base and snap the shares out of a longer-term downtrend to confirm the start of a new uptrend. Should that occur, measured moves suggest potential upside resistance near $29.75 ad $34.75 on trend.
First Quantum (FM.TO) shares appear poised for a major breakout. Back in July, FM.TO bottomed out in a Bear Trip where it broke down by two rows then reversed upward and never looked back. Having established higher lows near $20.00 and then $22.50, First Quantum has completed two recent pattern breakouts, a bullish Triple Top and a bullish Spread Double Top.
Currently, FM.TO is challenging resistance near $27.00. A close above $27.50 would complete a large pending spread triple top pattern and snap a downtrend line to confirm the start of a new uptrend. Should that occur, potential upside resistance may appear near $31.00 or $36.30 based on previous column highs and lows, or $32.85 based on a vertical count. Initial support appears near $24.90 based on a 3-box reversal.
With a bullish SMAX score of 7, up from a low of 0 as recently as early September, FM.TO is exhibiting strength against the asset classes.
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