Southern Copper (Friday’s close $43.71) declined from $58.08 in April, 2018, to $29.01 in January, 2019, (A-B) and then settled in a large, bullish triple-bottom formation (dashed lines). The recent move above the neckline at ±$44 (shaded area) suggests a breakout; a sustained escalation above this level will confirm the breakout and the start of a new major up-leg toward higher targets.
The recent rise (C-D) produced an overbought condition, and although it may continue a while longer, a minor correction would provide a good entry point. There is good support near ±US$39; only a sustained decline below ±US$37 would be negative.
Point & Figure measurements provide targets of US$49 and US$54. The large triple-bottom pattern (dashed lines) supports higher targets.
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Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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