When first posted about one of my stock preferences, Southern Peru Copper (PCU), it was October 12 and PCU closed the day at $49.02 USD.
It opened this morning, October 26, two weeks later at $53.01 USD. This is significant because it closed yesterday above it’s previous high.
Where technical analysis is concerned, a close above the previous high on large volume would indicate that there is little in the way of overhead resistance and the sentiment for a higher stock price is evident.
Southern Peru Copper has been making its gains in recent weeks on average volume. It would be prudent, in my opinion, to watch for the stock to close at a new high on volume significantly greater than the average volume. If the stock were to close significantly lower on larger than average volume, this would indicate a red flag and possible profit taking.
What are your thoughts on Southern Peru Copper?
Feel free to leave a comment and let me know if you think I’m off my rocker!