Teck Resources in Bullish Pattern

The weekly chart of Teck Resources Ltd. (NYSE: TCK) -- a metals mining, minerals, and natural resources company -- shows a huge multi-year accumulation/base formation that broke out to the upside last November above 46.90/95. Since that breakout, TCK has climbed to its Jan 2011 high at 65.37, after which the price structure returned to test its neckline breakout plateau.

In fact, just over one week ago, TCK hit its pullback low at 45.24, prior to rallying to 50.76 on May 19. That rally, when scrutinized under a "microscope," has the right look of the end of the Jan-May correction back to the "neckline" of the multi-year base pattern. It also shows the beginning of a new upleg that should propel prices above 65.37, on the way to an optimal measured next target zone of 75.00-77.00.

Of course, for that to happen, the commodity sector must remain relatively buoyant, while the overall market (SPX) must refrain from rolling over into a nasty correction that breaks 1305/00 (last is 1314.37). With the aforementioned in mind, I am only willing to risk a break of yesterday's low at 47.01 to stay in the position.

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