Southern Copper Keeps Sinking, Here’s The Support Level

President & CEO Chief Market Strategist at IntheMoneyStocks.com • Sep 8, 2021 at 2:08 PM EDT

Earlier this year, the leading copper producer, Southern Copper Corp, was on fire. The stock made an all-time high in May at $83.29 a share. Since that high pivot, the shares of Southern Copper stock have declined sharply.

Earlier this year, the leading copper producer, Southern Copper Corp (SCCO), was on fire. The stock made an all-time high in May at $83.29 a share. Since that high pivot, the shares of Southern Copper stock have declined sharply.

The stock has recently been trading around the $60.45 level and it looks very weak on the daily chart. The stock has now fallen below its important 50- and 200-day moving averages, confirming the daily chart downtrend.

The next major support area for Southern Copper stock will be around the $53.00 area. This level is an important retracement area from the March 2020 lows to the May 2021 top.

Oftentimes, major retracement levels serve as excellent support when tested. This is also a monthly breakout level from October 2020, which should add strength to the support area when tested. This is a level where I will be looking for a long-side trade setup in the stock.

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