TMC the metals company Inc.: Navigating the Bullish Waves Amidst Volatility

Technical Analysis of TMC the metals company Inc. (TMC) from 2025-01-03 to 2025-05-02

1. Price Movement and Volume Analysis: The price chart data for TMC shows significant volatility over the past months, with prices starting at $1.20 on January 3, 2025, and making their way to around $2.98 by May 2, 2025. There has been a general uptrend with significant price swings indicating high volatility:

• Jan 15 to Jan 17: A sharp rise from $1.11 to $1.59, driven by high trading volumes reaching up to 16.3 million shares on January 17th.
• Feb 18 to Feb 19: Another notable increase where price surged from $1.88 to $2.37 coinciding with high volumes suggesting bullish sentiment.
• April 14 to April 15: The most dramatic spike observed where prices jumped from $2.40 to $2.86, closing at $2.87 on high volumes. The next day saw a similar high volume of over 40 million, indicating significant market events or news.

2. Support and Resistance Levels:

• Support Levels: Observed around $2.20, $2.60, and more recently around $3.00 suggesting demand zones and buying support.
• Resistance Levels: Closely identified at $3.00 and $3.50 historically; however, recent fluctuations suggest new potential resistance around $3.30 during May 2 intraday trading.

3. Moving Averages and Trend Analysis:

• Moving Averages: Both short-term and longer-term moving averages show upward momentum (20-day SMA has consistently remained below the price for much of March and April).
• Trend Line: Drawing a trend line from January to April highlights a steady upward trajectory amid volatile swings, confirming an uptrend pattern.

4. Bollinger Bands: The Bollinger Bands indicate TMC's price trending above the middle band (mean), suggesting bullish conditions. However, the price occasionally touches the upper band, indicating overbought conditions, as seen multiple times during rapid uptrends.

5. RSI (Relative Strength Index):

• RSI Evaluation: The RSI frequently approached or crossed the 70 mark during peaks, especially in mid-May and late April, indicating overbought conditions, but not excessively spiking RSI suggests potential stability before entering a major correction.

6. MACD (Moving Average Convergence Divergence): MACD line has been above the Signal line most of the time from March, reinforcing bullish market sentiment.

Final Assessment: The analysis indicates an ongoing bullish trend but frequent overbought signals suggest the possibility of a near-term correction or consolidation around the current $2.98 level. Given the high volatility and price moves, a cautious approach would be warranted. TMC has shown its ability to recover quickly after corrections.

Current indicators suggest holding off from aggressive new buying at resistance levels due to potential retracement but staying bullish considering long-term trends. Enter on dips in alignment with support levels if bullish confirmation is observed.

In conclusion, with a keen eye on support at $2.80-$2.90 and resistance at $3.10-$3.30 for possible entry or exit triggers, consider taking profits around these zones. Decision: Hold off immediate buying and Buy on dips.