Bullish signal on Teck Resources (TECK), as it hits lower rail of upwardly sloped trend channel
Canadian mining company Teck Resources (NYSE: TECK) struggled throughout 2018, but the stock is showing signs of life in 2019. Since late November the stock has seen a series of higher lows that have formed a trend line. That trend line is actually the lower rail of an upwardly sloped trend channel and the stock hit it in the last few days.
You can see that the daily stochastic readings are in oversold territory and just made a bullish crossover. The indicators did the same thing back in November when the first low was hit to start forming the trend channel.
The Tickeron AI Trend Prediction tool generated a bullish signal on Teck Resources on February 14. That signal came with a confidence level of 75% that the stock would see a gain of at least 4% over the next month. Previous signals of this nature have been successful 77% of the time.
The fundamentals for Teck Resources are quite muddled. The company has seen earnings grow at an annual rate of 227% for the last three years, but they declined by 26% in the most recent quarter and are expected to decline by 30% in the current year.
Sales have grown by 21% per year over the last three years, but were only up 3% in the most recent quarterly report.
TECK in upward trend: 10-day moving average crossed above 50-day moving average on September 23, 2024
The 10-day moving average for TECK crossed bullishly above the 50-day moving average on September 23, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TECK advanced for three days, in of 310 cases, the price rose further within the following month. The odds of a continued upward trend are .
TECK may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The 10-day RSI Indicator for TECK moved out of overbought territory on September 30, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 similar instances where the indicator moved out of overbought territory. In of the 37 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on October 24, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on TECK as a result. In of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for TECK turned negative on October 08, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
TECK moved below its 50-day moving average on October 24, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TECK declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for TECK entered a downward trend on October 28, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.200) is normal, around the industry mean (7.448). P/E Ratio (13.471) is within average values for comparable stocks, (100.583). Projected Growth (PEG Ratio) (0.742) is also within normal values, averaging (3.023). Dividend Yield (0.008) settles around the average of (0.084) among similar stocks. P/S Ratio (2.187) is also within normal values, averaging (243.272).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TECK’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a company that engages in mining and mineral development of copper, coal & zinc
Industry OtherMetalsMinerals