Copper Stocks Signal Buy

Short-term buy signals have been triggered on some major copper stocks over the past few days, including Teck Resources [TCK.B:TSE] and Freeport-McMoran [FCX:NYSE], with an anticipated crossing on the DMI and MACD for BHP Billiton [BHP:NYSE] within the next few hours.

Teck Resources A Canadian play on copper would have to be TCK.B. Shares of Teck Resources had a buy signal on the MACD about one week ago, indicating the massive correction was coming to an end. Today, the DMI has had a positive crossing, suggesting an upward move to the top of the Bollinger Bands could be expected.



Freeport-McMoran Shares of FCX had two buy signals occurring on the same day, just three days ago on May 24. The stock has moved from $49 to $51.77 since that confirmed opportunity.



BHP Billiton The stock has already had a $5 move since copper hit $4 last week, but a buy signal is emerging on both the DMI and MACD. Its signals have not yet fully developed, but based on the moves on other major copper stocks, a trade on BHP with a call option, an uncovered put option, or an outright buy today would be an anticipative play, considering it has already moved 5 per cent in a week. Another consideration is that today's price action has moved the stock above the downtrend and the 20-day moving average - bullish notes.



Disclaimer: I do not own any of the equities mentioned in the article nor any derivatives of the underlying names. I do have a household position on Teck Resources and will most likely be trading the above-mentioned names in the next 72 business hours.

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