Friday, August 30, 2013

Southern Copper Corp (NYSE: SCCO)

Southern Copper Corporation engages in mining, exploring, producing, smelting, and refining copper and other minerals in Peru, Mexico, and Chile. It is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce anode copper; and refining of anode copper to produce copper cathodes, as well as refined silver. The company operates the Toquepala and Cuajone mine complexes and the smelting and refining plants, which produce copper with production of by-products of molybdenum, silver, and other material. It also has the La Caridad and Buenavista mine complexes and the smelting and refining plants that produce copper with production of by-products of molybdenum, silver, and other material. In addition, the company operates five underground mines that produce zinc, copper, silver, and gold; a coal mine, which produces coal and coke; and a zinc refinery. It has 80,512 hectares of exploration concessions in Peru; 123,293 hectares of exploration concessions in Mexico; 100,383 hectares of exploration concessions in Argentina; 35,958 hectares exploration concessions in Chile; and 2,544 hectares of exploration concessions in Ecuador.

To review Southern’s stock, please take a look at the 1-year chart of SCCO (Southern Copper Corporation) below with my added notations:

SCCO

SCCO has been in a persistent downtrend since January of this year. During that time the stock has also formed an important trend line of resistance (red). Always remember, any (2) points can start a trend line, but it’s the 3rd test and beyond that confirm its importance. As you can see, SCCO’s trendline was very important. Now that the stock has broken that resistance SCCO should either move higher or begin to form a base.

The Tale of the Tape: SCCO has broken a downtrending resistance. The stock should be bottoming out and eventually moving higher. Now would be a good time to watch the stock to identify a key level of entry, like for example, on a pullback down to $26.
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