Nexa Resources Surges 9.39% on Bullish Momentum: What's Fueling This Mining Giant's Rally?

Summary
• Nexa Resources (NEXA) surges 9.39% to $11.77, hitting its 52-week high of $11.80
• Zen Ratings ranks NEXA as 2 top mining stock in 2026 with a B rating
• Options chain shows 82% price jump in 12.5 strike call options
• Sector leader Vale (VALE) rises 2.3% as mining stocks gain traction

Nexa Resources is experiencing a dramatic intraday rally, surging 9.39% to $11.77 amid strong technical indicators and sector-wide optimism. The stock has pierced its 52-week high of $11.80, driven by a combination of fundamental upgrades and speculative options activity. With Vale leading the mining sector and Zen Ratings highlighting NEXA's undervaluation, investors are scrambling to position for potential follow-through.

Zen Ratings Upgrade and Sector Rotation Ignite Nexa's Rally
Nexa Resources' explosive 9.39% move stems from a confluence of factors: Zen Ratings' designation of NEXA as the 2 top mining stock in 2026, coupled with a 57.72% total return over the past year. The report highlights NEXA's 'A' valuation grade despite weak fundamentals, creating a paradox that has attracted both value investors and momentum traders. Simultaneously, sector-wide rotation into mining stocks - with Vale rising 2.3% - has amplified the move. The stock's 14.21 P/E ratio, significantly below the sector average, has made it a prime target for capital inflows seeking undervalued industrial exposure.

Mining Sector Gains Momentum as Vale Leads 2.3% Rally
The mining sector is experiencing a broad-based upturn, with Vale (VALE) leading the charge with a 2.3% intraday gain. This momentum has spilled over to smaller players like Nexa Resources, which is outperforming the sector's 0.47% average daily gain. Zen Ratings' analysis shows Vale as the most undervalued major miner with an 'A' valuation grade, while Nexa's 'A' valuation against weaker fundamentals creates an intriguing contrast. The sector's average P/E of 8.61x makes it one of the most attractively priced industrial groups, fueling continued inflows into names like NEXA.

Options Playbook: Leveraging NEXA's Bullish Breakout with Gamma-Driven Contracts
• 200-day MA: $5.78 (well below) | RSI: 75.8 (overbought) | MACD: 0.815 (bullish) | Bollinger Upper: $10.86 (broken)
• Support/Resistance: 30D $8.84-$8.92 | 200D $4.90-$5.03

Nexa Resources is in a textbook breakout pattern, with technical indicators screaming bullish momentum. The 75.8 RSI suggests overbought conditions, but the 0.815 MACD and 0.114 histogram confirm strong momentum. Options traders should focus on gamma-positive contracts with moderate deltas to capitalize on continued volatility. Two standout options:

• NEXA20260220C12.5
- Call Option | Strike: $12.50 | Expiry: 2026-02-20 | IV: 76.34% | LVR: 14.21% | Delta: 0.440 | Theta: -0.018 | Gamma: 0.137 | Turnover: 540
- High IV suggests market anticipation of volatility | Moderate delta balances directional risk | Strong gamma ensures price sensitivity | High turnover ensures liquidity
- Projected 5% upside (to $12.36) yields $0.86 payoff (82.22% gain). Ideal for capitalizing on short-term momentum.

• NEXA20260320C10
- Call Option | Strike: $10.00 | Expiry: 2026-03-20 | IV: 63.32% | LVR: 5.30% | Delta: 0.764 | Theta: -0.010 | Gamma: 0.098 | Turnover: 2,540
- Lower IV reduces cost basis | High delta captures directional move | Strong theta decay creates urgency | High turnover ensures execution
- 5% upside (to $12.36) yields $2.36 payoff (41.03% gain). Best for holding through potential earnings catalysts.

Aggressive bulls should consider NEXA20260220C12.5 into a breakout above $12.50. Conservative traders may prefer NEXA20260320C10 for a more controlled position with higher liquidity.

Backtest Nexa Resources Stock Performance
The backtest of NEXA's performance following a 9% intraday increase from 2022 to the present shows poor results. The strategy yielded a -3.32% return, underperforming the benchmark by 46.29%. With a maximum drawdown of 59.31% and a Sharpe ratio of -0.02, the strategy indicated a high-risk, low-reward profile.

Nexa's Breakout Confirmed: Position for 2026 Mining Sector Leadership
Nexa Resources has confirmed its breakout with a 9.39% surge to the 52-week high, driven by Zen Ratings' valuation upgrade and sector rotation. With RSI at 75.8 and MACD in bullish territory, the technical setup favors continuation. The options market is pricing in significant volatility, with 76.34% IV on the 12.5 call. Sector leader Vale's 2.3% gain reinforces the mining sector's strength. Investors should monitor the $12.50 level as a critical inflection point - a close above would validate the breakout pattern. Position now with the NEXA20260220C12.5 call for maximum leverage on this momentum-driven trade.