With Gold, Silver, and Copper prices soaring, the miners saw very strong gains, with Southern Copper (SCCO) closing +6.5% @ $27.58. Near term trend remains to the upside, but there is severe resistance in the $28.75/29.25 area. It will be extremely difficult to hit the $30s.
I remain a fan of the miners, not least FCX, but also SCCO. Both have great long term outlooks, but with commodity prices very weak since the spring 2011 peak, both have been decimated for the past two years.
Despite the miners all soaring today, they do remain within very broad downward trends.
I do not expect a trend break in the current up wave, not least if the metals get smashed lower - as I'm seriously expecting.
SCCO looks set to rollover in the coming few days - along with the main market..and the precious metals.
It remains very viable for SCCO to slip under $20 this autumn, which would be an extremely severe drop of 25%