Stock Analysis: Southern Peru Copper (PCU)
PCU has been one of my long time favorites. This has been my commodity play time and time again. They produce copper, zinc, and silver, and mine gold and lead as well. These guys have solid fundamentals, a strong management team, and are riding a long technical uptrend. If that doesn’t sound good, their 7% dividend yield is icing on the cake.
Key notes:
- Look for resistance at around 95. The price bounced off 94.99 today and the previous high was at 94.77.
- Look for support at around 90.
This chart pattern is known as an ascending triangle. If price breaks through resistance, expect a strong move up. If price breaks through support, expect a strong move down. Identifying the ascending triangle when the price is near the tip of the triangle is a great opportunity because you can expect a major move in either direction within a short time frame. You typically want to wait until after price breaks through resistance (or support) to buy (or short).