Our previous publication on First Quantum Minerals Ltd. (Feb. 15, 2014 – $21.16) stated that the stock was on the verge of a breakout. Immediately following our report, bullish sentiment drove the stock to $27.29 for a 29-per-cent appreciation in about five months (A).
First Quantum is currently somewhat overbought and may have a minor correction. There is good support at $23-$24. Only a decline below this level would signal further weakness toward the 40-week moving average (40wMA).
Sentiment indicators including the rising 40wMA, the positive moving average convergence/divergence (MACD, lower panel) and the rising trend-line (solid line) confirm the bullish status.
Point & Figure measurements provide targets of $29 and $34.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc.(www.phases-cycles.com). Ron Meisels is a contributor to thewww.NA-marketletter.comwebsite and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.