Metals Pop On Dollar Weakness, Can They Hold?
All of the major leading industrial metal producers are trading higher this morning. The catalyst for the move higher in these stocks is the weaker U.S. Dollar Index. These days the inverse relationship between the U.S. Dollar and the major stock indexes has decoupled due to the light volume in the market, however, a weak dollar still helps to inflate commodities.
Freeport McMoRan Copper & Gold Inc (NYSE:FCX) is the world's leading copper producer. This stock has surged sharply higher since December 19, 2012 when it traded as low as $35.65 a share. This morning, FCX is trading higher by 0.43 cents to $42.08 a share. The stock should face some very important short term resistance around the $42.50 area on the hourly chart. Should the stock pullback during the session there will be some intra-day support around the $41.65 and $41.25 levels.
Other leading industrial metal stocks that are trading higher today include Teck Resources Ltd (NYSE:TCK), Cliffs Natural Resources Inc (NYSE:CLF), and Rio Tinto plc (NYSE:RIO). All of these stocks mentioned are now trading into important resistance areas on the charts and could be due to pullback very soon.