Teck Resources retests lower rail of channel and gets bullish signal at the same time
I wrote about Teck Resources (NYSE: TECK) just a few weeks ago on February 19. The mining company had hit the lower rail of an upward sloped trend channel and the Tickeron AI Trend Prediction tool had just generated a bullish signal on the stock.
The stock had closed at $22 when I wrote that article and it proceeded to jump up to a high of $23.83 on February 25. That is a jump of 8.7% in just a few trading days.
Now the stock has hit the lower rail of that trend channel once again and the AI Prediction tool has generated another bullish signal. We see on the chart how the stock bounced and then pulled back down. The blue arrow denotes when I wrote the first article.
The bullish signal from the prediction tool came on March 5 and it had a confidence level of 68%. The previous predictions have been accurate 77% of the time and it calls for a gain of at least 4% over the next month.
I mentioned the fundamentals in my previous article and how they were kind of muddled. To give you a better idea, Investor’s Business Daily gives Teck Resources an EPS rating of 53 and an SMR rating of a B. This means it is average when it comes to earnings growth and slightly above average in terms of sales growth, return on equity, and profit margin.
Earnings declined by 26% in the most recent quarter while sales only grew by 3%. The company does have a profit margin of 33.1% and that is well above average.
TECK in downward trend: price may decline as a result of having broken its higher Bollinger Band on May 12, 2025
TECK broke above its upper Bollinger Band on May 12, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 46 similar instances where the stock broke above the upper band. In of the 46 cases the stock fell afterwards. This puts the odds of success at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 65 cases where TECK's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
TECK moved below its 50-day moving average on May 15, 2025 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 .
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 09, 2025. You may want to consider a long position or call options on TECK as a result. In of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for TECK just turned positive on April 16, 2025. Looking at past instances where TECK's MACD turned positive, the stock continued to rise in of 55 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TECK advanced for three days, in of 323 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 240 cases where TECK Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. TECK’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued 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 (4.943). P/E Ratio (13.471) is within average values for comparable stocks, (107.207). Projected Growth (PEG Ratio) (0.742) is also within normal values, averaging (3.280). Dividend Yield (0.008) settles around the average of (0.056) among similar stocks. P/S Ratio (2.187) is also within normal values, averaging (250.659).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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
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