Bouncing back from a spring dip down into the yellow zone, Copper producer First Quantum Minerals (FM.TO) returned to the Green Favored Zone of the SIA S&P/TSX 60 Index Report earlier this month and since then the shares have gained 17.5%. In the last month FM.TO has climbed 12 positions to 4th place. For the last year, First Quantum Minerals (FM.TO) has been under accumulation, advancing in a step pattern of rallies followed by periods of consolidation at higher levels. A May correction bottomed out at another higher low and since then, the shares have been retaking lost ground. Yesterday, they broke out intraday, and a close above $37.00 would confirm the start of a new rally phase.
Initial resistance may appear near $39.00 based on previous highs, A measured move from the current trading range suggests potential upside resistance near $46.00 which is also close to the March 2022 peak, followed by the $50.00 round number. Initial support appears near $34.00 then the 50-day average near $32.00.
Since a selloff in First Quantum Minerals (FM.TO) shares bottomed out a year ago, they have been steadily recovering lost ground, establishing a recovery trend of higher lows and higher highs. Bouncing back from a May correction, FM.TO completed a bullish Double Top pattern earlier this month kicking off a new upleg that would be confirmed by a close above $36.90.
Potential upside resistance tests appear at a previous column low near $39.90, followed by the April 2022 peak near $44.95, and then $46.75 based on a vertical count. Initial support appears near $33.40 based on a 3-box reversal and previous column highs and lows.
With its bullish SMAX score increasing to 7, FM.TO is exhibiting strength against the asset classes.
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