Southern Copper Jumps 7.82% to $104.67 on Fourth Straight Gain

Southern Copper (SCCO) surged 7.82% in the latest session, marking its fourth consecutive day of gains with an 11.99% advance over this period, closing at $104.67. This robust momentum follows a volatile 12-month trajectory ranging from a low of $75.63 to a high of $120.43, establishing critical technical reference points for our analysis.
Candlestick Theory
The recent four-day rally culminated in a strong bullish candle on June 26, 2025, with a high of $105.58 and close near the session peak ($104.67), signaling sustained buying pressure. This pattern emerged after consolidation between $92.95–$97.52, with the breakout confirming $95.75 as immediate support. Key resistance is established at $105.58 (today’s high), while $100.15 (today’s low) now serves as near-term support. A close above $105.58 could trigger further upside, though exhaustion may develop near this level without volume confirmation.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bullish configuration, with the price ($104.67) trading above all three. The 50-day MA crossed above the 200-day MA in mid-May 2025, forming a "golden cross" that validated the reversal from the $75.63 low. This alignment suggests established upward momentum, with the rising 50-day MA ($94.50–96.00 range) reinforcing dynamic support. Sustained price leadership above these averages indicates intermediate-term strength, though a retreat toward the 50-day MA would align with typical pullback behavior.
MACD & KDJ Indicators
The MACD histogram shows expanding positive momentum, with the MACD line holding above its signal line since early June, reinforcing bullish bias. Concurrently, KDJ readings have entered overbought territory (K: ~87, D: ~82, J: ~97), reflecting the velocity of the recent advance. While this KDJ positioning suggests near-term consolidation risk, the absence of bearish divergence (price and momentum align) tempers reversal concerns. Traders should monitor for MACD line flattening or KDJ bearish crossovers as early caution signals.
Bollinger Bands
Price positioned near the upper Bollinger Band ($105.00–106.00) on June 26 coincides with expanding band width—a volatility signal often preceding directional continuation. This deviation from the 20-day moving average ($97.50–98.00) implies stretched conditions short-term. A consolidation or mild pullback toward the midline ($97.50) would realign price with mean volatility, though sustained upper-band proximity underscores underlying strength.
Volume-Price Relationship
Volume surged 48% on June 26 relative to the prior session (1.68M shares vs. 1.13M), validating the breakout’s conviction. The four-day rally saw above-average volume on three sessions, confirming accumulation. This volume profile contrasts with the distribution observed during the April downtrend, supporting trend sustainability. However, continuation requires persistent volume commitment; deterioration below 1.2M shares may signal fatigue.
Relative Strength Index (RSI)
The 14-day RSI (~73) approaches overbought territory but lacks bearish divergence, aligning with the strong trend. While crossing above 70 often precedes pullbacks, its warning nature is evident in prior instances (e.g., April peak at RSI 78 preceding a 30% decline). Current levels imply elevated short-term risk but do not contradict the broader uptrend. A retreat to RSI 50–55 could offer healthier entry points without damaging structure.
Fibonacci Retracement
Applying Fib levels to the primary decline from $120.43 (September 2024) to $75.63 (April 2025), the recent close at $104.67 exceeds the 61.8% retracement ($103.32), targeting the 78.6% level at $110.85. This breach of a major Fib hurdle corroborates bullish sentiment. Concurrently, the secondary Fib grid (from the $75.63 low to $105.58 high) identifies pullback supports at $98.51 (23.6%), $94.14 (38.2%), and $90.61 (50%). Confluence exists at $103.32–$105.58, where multiple resistance factors converge, warranting vigilance for profit-taking.
Confluence and Divergence Observations
Notable confluence occurs at $103.00–$105.50, where the Fibonacci 61.8% level, upper Bollinger Band, and recent price highs align. This zone may trigger consolidation, but a decisive close above it would open technical targets near $110.85. No material divergences exist among momentum oscillators, though RSI and KDJ overbought readings warrant monitoring if the advance extends without volume support. The primary risk remains exhausted buying pressure near technical ceilings, contrasted by alignment across trend-following indicators (MAs, MACD), which favor upholding the bullish structure with shallow pullbacks.