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HBM - completing wave 1 up off the low. Will be waiting for a pullback

Hudbay Minerals Inc is a Canadian mining company. The major mines that Hudbay operates are located in Manitoba, Canada, Arizona, United States; and Peru. The company is principally focused on the discovery, production, and marketing of base and precious metals. Hudbay produces copper concentrate, which contains copper, gold, and silver, as well as zinc metal. More than half the company’s revenue is attributable to the copper business.

It’s one of those very few mining companies that are profitable! It’s net margin is 12.2% and it even delivers positive free cash flow. It has a very attractive valuation of Price-to-Free-Cash-Flow as low as 6.2. This is one of my favorite stocks.

Here HBM is about to complete the wave 1 up off the low. The first strong resistance zone is in between 5.99-6.08. There is a higher zone at 6.70 but I do not see high probability of getting there.

Once HBM tops out in this wave C of 1 we should get a pullback in wave 2 down.

The most conservative target for a pullback down is 4.76 but I hope it may get to 4.44-4.30. I am selling it here and will be patiently waiting for opportunity to reload.

HBM 45 min chart updated on 30 January 2019

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