Thursday, 13 June 2013

SCCO - big jump within a down trend

With the main indexes seeing a strong upside reversal after minor opening declines, Southern Copper (SCCO) closed significantly higher, +3.3% @ $30.25. Near term trend looks moderately bullish, but there is very strong declining resistance around $32.50.

SCCO, daily


I am always in favour of the miners, real companies, doing real work, for a commodity the world needs! Yet, commodities peaked in early 2011, and the broader down trend continues.

Copper itself looks very weak, and a break under $3 looks possible later this summer, unless the central banks can somehow get some inflation into the system.

SCCO is one of the stronger miners out there, yet it remains in a very strong down trend, having fallen from $41 in late January to the low $29s - that's a good 25% !

If the main market rolls over in July - after putting in one final high, then the miners will surely be even lower later this year.