We initially recommended First Quantum Minerals Ltd. FM-T on Nov. 21, 2020 ($17.55), and identified a breakout from a bullish Inverse Head-and-Shoulders pattern (solid lines). In a subsequent report (April 24, 2021 – $26.89), we suggested a correction but higher long-term targets.
First Quantum (Friday’s close $xx.xx) rose to a high of $35.07 in May, 2021, for a 100-per-cent gain since our first report (A). Subsequently, the stock pulled back temporarily below its 40-week Moving Average (40wMA) to $20.67 (B) and then quickly returned and rallied above its Average to signal the resumption of the uptrend (C).
There is good support near $32-$33; only a sustained decline below ±$30 would be negative.
Point & Figure measurements provide a target of $42. Higher targets are visible.
The Globe and Mail
Monica Rizk is the senior Technical Analyst of Phases & Cycles Inc. (www.phases-cycles.com). Chart source: www.decisionplus.com
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