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Base Metal Miners on Tuesday, March 22: Some Up, Some Down

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Freeport continues to rise

Freeport-McMoRan (FCX), one of the largest copper miners, rose for the second consecutive trading day on Tuesday, March 22, 2016. It started the week on a strong note, posting gains on Monday. On Tuesday, it stayed on a positive note and closed the day at $10.99, a rise of 1.8%.

Freeport had fallen to a multiyear low of $3.74 in mid-January, but then it started its recovery and is currently trading at a staggering 193.9% above its January lows. According to recent releases of several hedge funds, many of them increased their stakes in Freeport-McMoRan in the fourth quarter of 2015 to take advantage the Freeport’s low prices. The price levels of $10 and $12 are Freeport’s nearest support and resistance levels.

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Glencore continues to weaken

Glencore (GLNCY), the metals trading and mining giant, declined 2.1% on Tuesday and closed at $4.48. This is its lowest close in the past four trading days. Glencore had reached multiyear lows in mid-January and then started to recover, much like Freeport. But in the second week of March, there was a mining accident in a Glencore-owned mine in the Democratic Republic of the Congo. Since the beginning of 2016, Glencore has risen 70.7%. The price levels of $4 and $4.50 are Glencore’s nearest support and resistance levels.

Alcoa falls for second consecutive day

On Tuesday, March 22, Alcoa (AA), one of the largest aluminum miners in the world, fell for the second consecutive trading day to $9.85. It was a loss of 0.4% from Monday’s close. Alcoa had closed the previous week above $10 for only the second time in 2016. But then it lost steam and has stayed below $10 this week.

In September 2015, Alcoa declared its decision to split into two publicly traded entities to unlock its value amid weak commodity market conditions. Recently, it announced that the name of the spinoff will be Arconic.

BHP Billiton (BHP), the Anglo-Australian mining company, fell 1.4% to $26.71 on Tuesday.

The SPDR S&P Metals and Mining ETF (XME) rose 0.10% on Tuesday. Base metal miners could start recovering once copper starts gaining. So it’s worth noting that copper has been consolidating for the past three trading days.

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