S32 is a mining company that was spun out of BHP nearly 10 years ago.

“It is focused on a range of commodities such as alumina, coal, manganese, silver, lead, and zinc,” Michael said.

“The company runs these businesses well and has a robust balance sheet.

“However, the commodities space has been unloved for a while and capital inflows in the share market have favoured other sectors such as technology stocks.

“With commodity stocks looking very cheap and volatility set to shift up a gear under the Trump administration, there is a prospect that 2025 could see funds move out of long duration assets and back into hard assets.

“Looking at the S32 chart, we seem to have a clear line that will indicate when this could start to occur.
“Since peaking in early 2022, S32 has been trending lower.

“However, it appears to be hugging the underneath of this downtrend line and could be getting ready for an upside break.

“If we get an upside breakout, it could result in a significant move higher as it recovers back towards $5 as a starting point.

“For now, however, it remains on the watchlist.

“We would look for a close above $3.90 to indicate the buy trigger,” Michael said.

South32 (S32)

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.