Credit: Shutterstock photoBy Garrett Patten, ElliottWaveTrader.net
Freeport-McMoRan Inc. (FCX): Freeport has been out of favor for the past serval years, shedding 94% of its value since the 2011 peak before it bottomed in January of this year. After this decimating decline, the stock is finally starting to show signs of life again. Freeport has staged an impressive 300% rally off the January low, which exhibits encouraging Elliott Wave structure for a sustained uptrend beginning. Price should be beginning a brief pullback to correct this initial rally, targeting 8.30 – 5.99 over the next two months before the uptrend resumes. This pullback would present a buying opportunity using a stop below the January low, offering favorable risk vs. reward with an initial target region between 24 and 34.
Teck Resources Limited (TCK): Teck Resources has suffered a similar fate to Freeport over the last several years, losing 96% of its value since the 2011 peak before it bottomed in January of this year. This chart also shows promising price structure suggesting that a sustained uptrend is beginning. After staging 5 waves off the January low, price should be ready for a brief pullback to correct this initial rally, targeting 6.83 – 4.70 over the next two months before the uptrend resumes. A decline into that target region would present a buying opportunity using a stop below the January low, offering favorable risk vs. reward with an initial target region between 23 and 33.
Stillwater Mining Company (SWC): Stillwatar’s behavior compares better with gold miners, but the stock still lost 80% of its value since the 2011 peak before it bottomed earlier this year in January. The impressive rebound since is encouraging for a sustained uptrend beginning though. Following an impulsive Elliott Wave structure off the January low, price should be beginning a corrective pullback targeting 8.96 – 7.17 over the next two months before the uptrend resumes. A pullback into that target region would present a buying opportunity using a stop below the January low, offering favorable risk vs. reward with an initial target region between 18.50 and 23.
Tahoe Resources Inc. (TAHO): While Tahoe has seen aggressive selling as well since the 2014 high before it bottomed earlier this year in January, shaving off 76% of its value, it is my least favorite out of the 4 picks presented in this article. That said, Tahoe has staged an impressive 120% rally off the January low, showing promising signs of a sustained uptrend beginning as well.
Similar to the other stocks highlighted, price should be nearing a pullback to correct this initial rally off the low, targeting 10.57 – 8.77 before the uptrend resumes. This pullback would present a buying opportunity using a stop below the January low, offering favorable risk vs. reward with an initial target region between 19.35 and 23.35.
See charts illustrating the wave counts on these stocks.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
