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.
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