Doc copper, our favorite indicator for the health of the global economy, is looking strong of late which has led to a breakout in Southern Copper stock.
Copper is close to testing its resistance zone at $2.88. A decisive break above this level would close the neckline of a Bullish Inverted Head and Shoulders pattern.
Southern Copper Stock
Fundamentally, this company is a beast. SCCO’s Return On Asserts of 6.89% is among the best returns of the industry. SCCO outperforms 95% of its industry peers. The industry average Return On Assets is 0.93%.
SCCO’s Profit Margin of 165.88% is among the best returns of the industry. SCCO outperforms 96% of its industry peers. The industry average Profit Margin is 100.09%.
Southern Copper’s EPS is expected to grow by 37.79% on average over the next 2 years. This is very strong growth.
The time to buy Southern Copper stock was on the pocket pivot (blue dot). Darn! Do not chase SCCO higher. This chart is not a good setup right now as prices have been extended to the upside. Here’s what I’d like to see SCCO do and where I think we could enter.
The idea is to wait for a pullback and then consolidation on a momentum squeeze off support. If previous resistance becomes support and we get a candle over candle reversal off this level, that’s the time to go long. Add Southern Copper to your watch list and look for the setup.