Is The Metals Company the next big growth stock?

As the US looks to achieve mineral independence, there are a ton of smaller companies reaping the benefits. The Metals Company (TMC) has been on fire lately because of its deep-sea mining prospects. Today it announced a strategic investment from Korea Zinc, which is making an $85.2 million investment in change for 19.6 million shares at $4.34.

That helped the stock rally nearly 30% today to close at $5.59. This all comes in the wake of President Trump’s executive order on deep sea mining back on April 24^th. Since then, the stock has been on fire, more than doubling its opening price that day.

Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.

Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.

Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.

Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.

Dave Bartosiak's technical analysis approach adds depth to our understanding of The Metals Company’s stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.

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This article originally published on Zacks Investment Research (zacks.com).

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