Ero Copper (ERO) is a copper producer with operations in Brazil and corporate headquarters in Vancouver, B.C. ERO is not a household name but with copper futures in a long-term bull market I want to be positive on this company. Let's review some charts.
In this weekly chart of a copper futures continuation chart, below, I can see the last 10 years of price action. Prices are trading above the rising 40-week moving average line. The weekly On-Balance-Volume (OBV) line is very strong and shows only minor weakness when futures decline in 2022. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this daily bar chart of ERO, below, I see an impressive rally from July. Prices trade above the rising 50-day moving average line and above the rising 200-day moving average line. The trading volume has increased with the price action since the end of 2022 and this tells me that investor interest is on the rise.
The On-Balance-Volume (OBV) line has surged higher from late December to tell me that buyers of ERO have turned very aggressive. The MACD oscillator has been bullish since August.
In this weekly Japanese candlestick chart of ERO, below, I see a bullish setup. Prices are in a longer-term uptrend and trade above the rising 40-week moving average line. The weekly volume histogram shows a strong increase in turnover from early 2022. The weekly OBV line made a low in June of 2022 and has chopped higher since then. The MACD oscillator is very bullish.
In this daily Point and Figure chart of ERO, below, I can see an upside price target in the $24 area.
In this weekly Point and Figure chart of ERO, below, I used a five box reversal filter. Here the software projects the $31 area as a potential longer-term price objective.
Bottom line strategy: Aggressive traders could go long ERO in the $19-$18 are risking to $15.75 for now. My price targets are $24 followed by $31.
