FCX, SCCO - miners trying to climb up

The mining sector is still in the process of trying to build a price floor, after six months of huge declines. The leading copper miners Freeport McMoran (FCX) and Southern Copper (SCCO) are both set to see underlying momentum go positive across the next few days.


FCX,daily

SCCO, daily

Summary

Suffice to say, despite the main market at historic post 2009 highs, the mining sector stocks are still really struggling.

FCX had its third positive day, whilst SCCO again slipped back.

Underlying MACD (blue bar histogram) is set to go positive cycle within the next day or two, and that is suggestive there should be at least a little near term upside yet to come.
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Both FCX and SCCO are absolutely huge, with market caps of around 40bn, both have very impressive profit margins, and relative to the main market, are not over-priced.

The problem both face is that if the main market does turn lower this spring - and commodities fail to hold above key thresholds (such as copper $3.50)..then the miners may still have a considerable way to yet fall.