Chart shows a positive, ascending triangle pattern. A series of higher highs and higher lows. When you get a breakout to the upside, that's very positive. In fact, it's one of the most positive patterns in tech analysis. Positive tailwinds in the space will be tailwinds for the stock.
Likes base metals more because of where we are in the cycle, but gold and gold stocks are sending signs that they want to break out. Testing the upper range. Gold stocks look to be putting in a multi-month low and set to run. FNV looks set to test $200, breaking above highs of 2020 would be really positive. Gold is one of his best ideas. Yield is 0.93%.
(Analysts’ price target is $221.62)In the next month or two, there's going to be some correction or consolidation. Reward/risk level here is not great. Put stops on 20-30% of your position. Once we hit the corrective phase, perhaps September-October, look to re-enter. Has legs toward the $27 level around the end of 2025. Part of the AI wave.
The recession for copper ended back in October 2022. If we can take out just above $4, that would confirm the series of higher highs and lows, which is the definition of an uptrend. That's what we should expect to see if we're actually starting a new 3-5 year bull market.
He'd be looking to add. When equities lead the commodities higher, that's really bullish. If it takes out its level from the start of the year, that would be very positive, telling us it's going to test highs from 2022.
He really likes the copper space. See his Top Picks.
Stock looks great, and wanting to take out the highs of 2021. Bottomed before the market did last October, which is really positive. Higher highs, higher lows. Let the stock run. If it can take out $80, the next level is $100. Hold, even though the toughest thing to do is nothing.
For commodity stocks, you always want to look at the underlying commodity, as that will be a big driver. Energy is a late-cycle play and will be in the penalty box, similar to 2019-20. Crude will be locked in a trading range of $60-85 until late 2024 or early 2025.
Energy stocks will be relative under-performers for the next 1.5-2 years. So if the TSX is up 10%, energy stocks might be up 8%. You really want to be long energy when the cycle is long in the tooth and everything is running on all cylinders.
Chart is up and to the right. Company's on track, adding value for shareholders. He likes it, plus it's right in with the favourable financial theme.