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Freeport McMoran Is Ready To Fall Off A Cliff

ByAbigail Doolittle
Published 09/06/2012, 03:32 AM
Updated 07/09/2023, 06:31 AM
FCX
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HG
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BMA
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For the near-term and tactical traders out there, it appears Freeport McMoran (FCX) is offering a decent short opportunity on a small and imperfect Head and Shoulders pattern that makes for a nice apex to its most recent Rising Wedge.
FCX_1
FCX’s Rising Wedge outlined in the darker trendlines is confirmed for its target of $31 while the small H&S will confirm right around $34.65 for a target of $31.83 and fairly close to previous bearish target for FCX. Such a potential move down seems consistent with its apparent inability to rise above its 200 DMA with these patterns suggesting FCX may soon be near the bottom of this year’s sideways trend and back below the 50 DMA.

This makes sense, of course, in one of the more fractal chart displays out there with FCX’s very scary long-term chart showing an uncanny similarity to the six-month daily chart above not to mention the long-term chart of copper with its multi-year Head and Shoulders pattern and long-term Rising Wedge.
FCX_2
FCX’s long-term H&S confirms around $28 for a very conservative target of about $15 while its Rising Wedge born of QE1 that carries a full target of about $7 and the technical reason this chart stands out as truly frightening and something made worse by the fact that it is a likely reflection of the macro-picture and not something specific to FCX alone.

Unless FCX can rise above its 50 DMA and then its last protruding high right below $50, all of these bearish aspects should be taken very seriously even though it is tough to determine the precise timing of this very serious decline with some of the other risk asset charts suggesting it may come at any point ahead of next spring.

Put otherwise, it appears that FCX is ready to fall off of a cliff.

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