Market Overview

FCX: Testing the Integrity of a 3-1/2 Year Support Plateau

After a two month counter-trend rally effort from 30.54 to 36.25, during which time it attracted the attention and some huge hedgefund buying interest, Freeport-McMoran Copper & Gold (NYSE: FCX) turned down in early Feb., and has since declined 15%. More significantly, however, the decline in FCX exhibits bearish form within a multi-year top formation that is pressing the price structure towards another confrontation with 2010-2013 support between 31.00 and 28.35. Our work argues for a violation of support that unleashes powerful long side LIQUIDATION that presses FCX to 22.00-20.00 intially, and then to 15.00.  Anticipated acute weakness in FCX will reflect both global economic weakness AND its excessive costs for expansion.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Technicals Markets Trading Ideas

 

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