Base Metal Miner Hudbay Minerals Inc. (HBM.TO) has been climbing back up the Yellow Neutral Zone in the SIA S&P/TSX Capped Composite Index report this past week, bouncing back from a extended dip into the red unfavored zone which began last Spring. The shares have moved up 83 spots in the last month, including a rise of 130 spots in the last week to 60th place which has it sit right at the top of the Yellow Zone.
In looking at the attached candlestick chart, we see the shares found a bottom at approximately the $4.00 level back in July. Most recently, we see that Hudbay Minerals (HBM.TO) surged upward last week, breaking out of a $5.00 to $6.50 recent consolidation range to signal the start of a new upleg indicating renewed accumulation has begun in the shares. The next area of resistance appears near the $7.75 area with support at its recent break out point of $6.50.
In looking at the attached point and figure chart of Hudbay at a 2% scale, we see that the shares recently broke out above its previous resistance level at $6.24 and is quickly approaching the long tern down trend line at $6.89.
If the shares manage to break through its down trend line, next resistance appears to be at $7.76 and, above that, $8.40. To the downside, support can be found at the 3 box reversal level of $6.24 which was also its prior resistance.
With a SMAX score of 10 out of 10, HBM.TO is exhibiting near term strength across the asset classes.
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