With the weakness accompanying the China trade deal, industrial metals have been getting weaker. This week, the chart of Teck Resources (TECK) turned down again and now looks ready to break to new two-year lows. The SCTR for the stock is at its lowest level in two years. Relative strength, shown in purple, is making fresh two-year lows. The full stochastic is rolling over after stalling at 50, which is a trait we see in bear markets for a stock.
The horizontal blue line is at $18 and the stock is approaching that level quickly, having dropped 15% in 2 weeks. The PPO shows the momentum dropping below zero on the legend, while the zoom box shows it rolling over below zero. This is a very bearish setup.
My chart indicators are suggesting the overall market is rolling over. I'll have more on the weekend market review - stay tuned to the Canadian Technician articles to catch a link!
Good trading,
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts For Dummies
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