We just wrote about Teck Resources (TCK) on Thursday and indicated that we felt its best gains were behind it. A week later and we still see the same technical issues beneath the surface.
In this daily chart of TCK, above, we can see an eight-month uptrend. On the surface, prices and moving averages look bullish. Indeed, prices have been in a steady uptrend from the January low. The slope of the 50-day moving average turned positive very quickly in February and it remains so. Volume seems to have peaked in April but the On-Balance-Volume (OBV) line has kept rising and looks like it has crested this month. In the lower panel is the 12-day momentum study. Academics have proven what practitioners like me have found out from experience -- that momentum is a leading indicator. TCK made higher highs in August and then September while momentum made lower highs -- the lower highs tell you that acceleration or momentum has slowed and this can foreshadow a peak in prices.
This weekly chart of TCK has not changed much from our last visit. TCK is above the rising 40-week moving average line. The OBV line has an upward slope but may be stalling and the MACD oscillator has narrowed to a possible crossover and a liquidate-longs sell signal.