$OZL: Australian mining company Oz Minerals reaching medium-term buying area

Oz Minerals is an Australian mining company. The main products are gold and copper.  Formed in 2008 after the merger of Oxiana Limited and Zinifex, it is based in Adelaide, Australia. One can trade it under the ticker $OZL at ASE.

Since 2020, we see a strong rally in all metals. Therefore, one should expect mining companies to profit substantially from the rising prices of the underlying assets. Indeed, we see Oz Minerals turning higher from 2013 lows. Without any doubt, the rising gold prices since 2015 have supported the $OZL stock. Then, from 2020 lows, a strong push higher in Copper has provided an additional effect to the company stock. Now, we expect more upside in both gold and copper. Therefore, Oz Minerals should remain profitable for both investors and traders as it offers a considerable upside in the next future.

In the original article from September 2021, we have expected a short term-pullback and more upside. As a matter of fact, the cycle from March 2020 has not ended yet at that time. Now, we see the cycle ended. In the current blog, we discuss the short-term pullback providing a medium-term buying opportunity.

Oz Minerals monthly Elliott Wave analysis 05.15.2022

The monthly chart below shows the Oz Minerals stock $OZL at ASE. From the all-time lows, the stock price has developed a cycle higher in wave (I) of a super cycle degree. Hereby, $OZL has printed the all-time high on November 2007 at 43.20.  From the 2007 highs, a correction lower has unfolded as a zigzag correction in the blue wave (II). It has ended correcting the previous super cycle by printing an important bottom in December 2013 at 2.11.

From the 2013 lows at 2.11, a new cycle in wave (III) has already started. Clear break above 43.20 highs would confirm that. Right now, the wave (III) might be within a red wave I. Hereby, initial nest comprising waves ((1)) and ((2)) of red wave I has been formed. It has ended on March 2020. From the March 2020 lows, waves ((3))-((4))-((5)) should accomplish the wave I. Then, one should expect a pullback in red wave II and an acceleration higher in red wave III of the blue wave (III). The target for the wave ((III)) will be 45.14-71.79 area and possibly higher.

Oz Minerals daily Elliott Wave analysis 05.15.2022

The daily view demonstrates the final stages of the advance from the March 2020 lows in black wave ((3)) and the pullback in wave ((4)). From the 5.83 lows in March 2020, an impulse in black wave ((3)) has ended in January 2021 at 29.75. From the highs, pullback in wave ((4)) is currently unfolding as an Elliott wave zizag pattern and should find support above 5.83 lows. First, wave (A) has ended in February 2022 at 24. Then, a connector in wave (B) has printed a lower high in April 2022 at 27.75. From there, blue wave (C) might be still in progress. It has reached the extension area lower, but may still see more downside.

Investors and traders can be looking to buy $OZL from 21.99-18.43 area. There, a rally to new highs in wave ((5)) or a bounce in 3 waves as minimum should be expected. The target for wave ((5)) will be 31.79-35.12 area and even beyond.