See also our earlier blogs. Our big picture take on this stock has not changed at all. However, in the small picture we may have anticipated the low one single minor wave too early, that is the one dollar plus dive at the beginning of this year. We do not have charts that have high enough resolution to actually count minute waves properly. The $2.30 intraday stacks up quite nicely with the closing low of $2.28 eight years ago.
Note that this stock is correcting from the high near $30 in one , single A-B-C, 3-3-5, zig-zag, correction. This has been the case with most commodity related stocks as opposed to others that often follow the “flat” pattern. As far a I can ascertain the stock has fulfilled all the required subdivisions that one would expect and therefore should be in a new bull phase. The only alternative, given the proximity to zero, is that the company goes bust. This is extremely unlikely given the combination of a Mongolian government and Rio Tinto.
We never anticipated that copper, the metal itself, would trade below $2. It did early in this year but very briefly and also appears to have made a bottom. So, given all that things look pretty constructive. By the way, this is an absolutely huge project with most of the infrastructure already in place.
See also previous blogs on copper.