Wild Action in Southern Copper - PCU

PCU was able to bust through that downtrend roof I was talking about yesterday. The volume, however, was not impressive - and stochastics is reaching overbought territory. I think PCU may have trouble closing above its 50-day moving average - plus the 20-day MA is declining overhead and the former trendline could also become resistance. I'm hesitant to buy here - I'll sit back and watch to see if it can overcome this resistance around $102.


Here's the same chart, but it shows the violent swings PCU has undergone recently. If you had bought it last week at $80 you would be up 25%! If you had panicked out at $80, you would have been down 30% from the top. This is what swing trading is all about - trying to take advantage of ridiculous, illogical, and violent short term moves in stocks. These moves have nothing to do with the fundamentals of the company, ie. their earnings, and are mainly due to the short term mechanics of the market.