Is Freeport-McMoRan (FCX) Preparing To Run Higher?
Freeport-McMoRan, Inc. engages in the mining of copper, gold, and molybdenum. It operates through the following segments: North America Copper Mines, South America Mining, Indonesia Mining, Molybdenum Mines, Rod and Refining, Atlantic Copper Smelting and Refining and Corporate, Other and Eliminations.
Take a look at the 1-year chart of Freeport (NYSE: FCX) below with the added notations:
Chart of FCX provided by TradingView
Over the past couple of months, FCX seems to have formed an inverse head and shoulders reversal pattern. The head (H) and the shoulders (S) have been noted to make the pattern more visible. The stock’s neckline resistance is currently sitting around $32 (yellow). FCX would confirm its H&S by breaking through the neckline.
The Tale of the Tape: FCX may be forming an inverse head & shoulders pattern. A long trade could be entered on a break through the neckline, currently near $32.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT