On Monday, Teck Resources (TECK) rejected mining giant Glencore's (GLCNF) takeover proposal and shares surged sharply higher as analysts expect that a higher bid may be coming. TECK is a world leader in the production of lead and a significant producer of specialty metals such as germanium, indium and cadmium.
Let's check out the condition of the charts and indicators.
In this daily bar chart of TECK, below, I can see a large upside price gap. Prices surged above the 50-day moving average line. The trading volume surged.
The On-Balance-Volume (OBV) line was moving up before Monday's gap. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a cover shorts buy signal and an outright buy signal could come soon.
In this weekly Japanese candlestick chart of TECK, below, I see a bullish picture. The latest candle is still a work in progress until Friday's close but it is still impressive with a long white real body.
The OBV line shows a three-year rise and confirms the price gains the past three years. The MACD oscillator is above the zero line and poised for an upside crossover and fresh outright buy signal.
In this daily Point and Figure chart of TECK, below, I can see an upside price target in the $66 area.
In this second Point and Figure chart of TECK, below, I used weekly price data with a five box reversal filter. Here the software targets the $60 area.
Bottom line strategy: I have no special knowledge of what either party may do or recommend to their shareholders. Analysts with a good understanding of metals and mining may put a higher price tag on the company. The path of least resistance is up for now.
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