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Christian Tharp, CMT

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Five Star Stock Watch: Freeport-McMoran

Copper has been trending lower for the last few years having hit a new low back in March.

Gold has also been trending lower since hitting its high back in the summer of 2011.

These trends have certainly affected copper and gold stocks, but what about THE copper and gold stock, Freeport-McMoran?

Freeport-McMoran's stock has created clear buy or sell prices, both of which are analyzed in the breakdown below.

The company: Freeport-McMoran Copper & Gold, Inc

Ticker Symbol: (NYSE: FCX)

Sector: Basic Materials

Industry: Copper

Freeport-McMoRan Copper & Gold Inc., is engaged in the acquisition of mineral assets, and oil and natural gas resources. The company primarily explores for copper, gold, molybdenum, cobalt, silver, and other metals, as well as oil and gas. 

Related: Five Star Stock Watch: Gilead Sciences

The company holds interests in various mines located in the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, Miami, Chino, Tyrone, Henderson, and Climax in North America; Cerro Verde, El Abra, Candelaria, and Ojos del Salado in South America; and Tenke Fungurume minerals district in Africa.

Please take a look at the one-year chart of Freeport-McMoran below with added notations:

For the most part Freeport-McMoran has been trending more with copper rather than gold. However, the stock did not hit the new lows that copper recently did.

Over the last three months Freeport-McMoran has created a key level of support at $30 and a clear resistance at $34.

The break of one of those two levels should dictate Freeport-McMoran's next move.

Related: Five Star Stock Watch: Nike

Freeport-McMoran is set to release earnings on April 24, 2014.

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.

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