TMC Stock Resumes Downtrend on Ecological Concerns- $3 Target If Support Breaks
The Metals Company’s stock is navigating sharp swings, with policy support and strategic deals bolstering sentiment even as technical...
Quick overview
- The Metals Company's stock has experienced significant volatility, dropping from $8.65 to $4.38 before finding support at the 100-day SMA.
- Investor sentiment was bolstered by President Trump's executive order on deep-sea mining and a strategic investment from Korea Zinc, which raised optimism around TMC's future.
- Despite these positive developments, environmental concerns regarding deep-sea mining pose risks that could impact TMC's long-term outlook.
- The company's future hinges on balancing strong demand for battery metals with increasing ecological scrutiny and potential regulatory challenges.
The Metals Company’s stock is navigating sharp swings, with policy support and strategic deals bolstering sentiment even as technical resistance and environmental concerns weigh on its outlook.
Market Performance and Technical Picture
After a strong first half of 2025, when optimism around U.S. policy changes and battery metal demand propelled The Metals Company (NASDAQ: TMC) to multi-year highs, the stock has since faced heavy turbulence. Shares slipped from $8.65 in late July to $4.38 in August before finding support at the 100-day SMA.
TMC Chart Daily – The 50 SMA Turned Into Resistance
The recovery to nearly $6 was short-lived, as resistance at the 50-day SMA capped gains. Now, with the stock falling 10% today to approach $5, TMC’s $2.09 billion market value hangs on whether the $5 support holds—or risks sliding to the $3 zone if broken.
Policy Boost and Regulatory Green Light
Investor sentiment was initially strengthened by President Trump’s executive order accelerating U.S. deep-sea mining projects, sidestepping the International Seabed Authority. This policy shift gave TMC the ability to move forward under U.S. oversight. The National Oceanic and Atmospheric Administration (NOAA) later confirmed TMC’s compliance, further reinforcing optimism and creating a surge in trading volumes.
Strategic Investment and Analyst Support
Momentum grew when Korea Zinc invested $85.2 million in exchange for a 5% stake in TMC, along with warrants to buy more shares at $7 within the next three years. This vote of confidence was seen as both financial backing and strategic alignment for the long term. Analysts echoed this optimism, with Wedbush raising its target price from $6 to $11 and upgrading the stock to Outperform, citing faster commercial pathways and a more favorable policy climate.
Environmental and Market Risks
Despite stronger fundamentals, TMC’s long-term path is shadowed by ecological debates. Deep-sea mining remains highly controversial, with scientists and activists warning of irreversible damage to ocean ecosystems. If environmental pushback grows louder, it could trigger international regulatory hurdles that dampen TMC’s momentum, regardless of investor enthusiasm or U.S. government support.
Outlook: The Metals Company sits at a critical juncture—backed by policy tailwinds and fresh capital but pressured by technical resistance and ecological concerns. The battle between bullish demand for battery metals and bearish environmental scrutiny will determine whether TMC secures its place in the global supply chain or faces deeper volatility.
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