Mining stocks AEM, FCX, and HL are all perched neared significant technical levels
Retracement and Fibonacci levels are useful tools for predicting stock trends and trend reversals. As fate would have it, several mining stocks currently find themselves near key technical levels -- including a
pair of gold stocks highlighted earlier this month. This week, among the stocks approaching crucial areas are commodity concerns
Agnico Eagle Mines Ltd (USA) (NYSE:AEM),
Freeport-McMoRan Inc (NYSE:FCX), and
Hecla Mining Company (NYSE:HL).
AEM has been struggling since early August, when it hit a four-year high a hair north of $60. Earlier today, this downtrend brought the shares within a chip-shot of the 61.8% Fibonacci retracement of their 2000 lows and December 2010 highs, before they reversed higher. In fact, AEM stock was last seen up 2.1% this afternoon at $38.14, extending its year-to-date advance to 45%.
FCX has been a beast on the charts this year, roughly doubling in value at $13.45. In recent weeks, the stock had been running toward the $16 area -- corresponding with the 61.8% Fibonacci retracement of its mid-2015 highs and January 2016 low -- before losing steam. However, after taking a breather, FCX finds itself around the 50% retracement level, which could act as another potential inflection point -- this time to the upside.
HL has exploded in 2016, nearly tripling in value at $5.48. Recently, the shares have been trading in a sideways pattern between their 50% retracement and 61.8% Fibonacci level of their late-2000 lows and mid-2008 high. Another technical layer could be coming into play, as well, with the 40-week moving average recently catching up to HL stock. If this trendline acts as support, the shares could soon resume their long-term trend higher.
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