We looked at copper prices and Southern Copper Corp. (SCCO) on September 3 and wrote that "Lumber prices have been soaring. Copper prices are strong. Ignoring energy prices, are we entering an extended period of rising commodity prices? It might be too early to tell for certain, but for now copper prices are going up and the charts of SCCO are bullish. Trade SCCO from the long side risking a close below $42 for now."
Let's check out the latest charts.
In this daily bar chart of SCCO, below, we can see that prices have rallied since our last update. SCCO is above the rising 50-day moving average line and the rising 200-day moving average line.
The On-Balance-Volume (OBV) line confirms the price gains and the Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this weekly bar chart of SCCO, below, we went back to 1996 to show that a breakout over $57 is very bullish - new all-time highs.
In this daily Point and Figure chart of SCCO, below, we can see a possible upside price target of $64.
In this weekly Point and Figure chart of SCCO, below, we can see a price target of around $74.
Bottom line strategy: Continue to hold longs and raise stops to $46 from a close below $42. $64 and then $74 are our price targets now.
