The U.S. senate passed a bi-partisan bill spending billions of dollars in physical infrastructure; not surprisingly, resource stocks rose with strength with the spending announcement, observes Omar Ayales, resource sector expert and editor of Gold Charts R Us.
It keeps the buying pressure on for commodities, particularly the metals with high industrial use. We’ll continue adding to our resource portfolio if upside potential continues to develop.
Ivanhoe Mines (Toronto: IVN) has been among the best. I’ve been waiting for weakness to buy, but it seems to defy gravity. I know some of you bot below $9 last month.
IVN is now breaking out, confirming strength and more upside potential. A rise initially to the top side of the up channel near $11 is likely. Buy some on a pull back to $9.40 and lower.
I’m also adding a junior resource company, American Pacific Mining Corp. (USGDF). USGDF is in the business of mineral exploration in Nevada, U.S. One of the very interesting aspects is it recently signed a JV Agreement with Rio Tinto.
The agreement is bound to give USGDF exposure to a major asset that it will be able to develop with adequate funding having secured with Rio Tinto funding of $30 million over the next 11 years.
USGDF is breaking above consolidation band at the highs. The break above $0.70 shows impressive strength and opens the door to more upside. The leading indicator below is bullish, bouncing up, above the zero line telling us more upside is now likely. Buy at market.
Freeport McMoran (FCX) is rebounding, confirming s support above the Oct 2020 uptrend. It’s showing support above $33 but has strong resistance below the May downtrend at $40.
FCX must break above this level to confirm strength that could push FCX to higher levels, to possibly the March highs near $48. I’m also waiting for more weakness before buying new positions, ideally lower $30s.
NexGen Energy (NXE) is also looking very strong. It tested support at $4, trading below it for a bit, allowing those who have not jumped in, to buy some.
NXE is now bouncing up with strength, well above $4. It’s confirming the November uptrend and opening the door to a further upmove to the top side of the March 2020 up channel. The leading indicator below is holding at the zero line, a sign of strength.
Cleveland Cliffs (CLF) is also doing great. It’s breaking out from a bullish flag pattern with upside target at $30, or higher. I’ve been waiting for more weakness to buy more positions, average in a lower level. However, CLF continues to defy gravity and may not allow to buy at much lower levels. Buy more near $25.