Monday, November 26, 2018

FCX Freeport-McMoRan Daily and Weekly Charts; Positive Divergence; Potential W Bottom

FCX is set up to rally after its multi-month beating. On the daily, price makes a matching low and the indicators are all positively diverged wanting to see price rally higher. Price is near the lower standard deviation band, at 10.65, which must still be respected, and the middle band at 11.62 is on the table and also the upper band at 12.58.

On the daily, FCX is under the moving average ribbon so a mean reversion higher is needed. A potential W-pattern bottom is forming one of the strongest bullish chart patterns especially if the W forms completely below the 50 and 200-day MA's. The blue W will need the last leg up and the break-out line is at 12.5-ish. This forms a confluence with the upper standard deviation band and the 50-day MA resistance. If price breaks above 12.5, the W should shoot it up to 14.3-ish at a minimum; perhaps that resistance at 15 from August and September. Note the 200-day MA sloping negatively you can see maybe a month or two out it forming a confluence with that W target at 14.3-15.0 which may act as a magnet for price.

The weekly chart is set up with positive divergence as well which is a big plus for Frepeort bulls. The falling wedge and possie d should bounce price higher. The MACD line is sketchy with its bottom so price may want to jog up and down over the next week or two but the bottom appears at hand. The RSI did not reach oversold levels which remains on the table and something to remember.

On the weekly, that goofy blue H&S pattern targets the 8 level. The monthly chart remains weak with lots of choppy sideways slop likely ahead. The monthly chart would be open to seeing an 8 level say early next year. Thus the possie d on the daily and weekly right now will likely create a rally for a few days or week or three, but you cannot marry the trade, you must stay nimble in this environment.

For this week, FCX will depend on the President Trump and President Xi meeting on Friday/Saturday at the G20 Summit. Their talks are going to move stocks, commodities, bonds and Forex. If a trade agreement appears more likely, copper and FCX will bounce while if the trade negotiations breakdown copper will likely fall and so will FCX.

Keystone played FCX earlier in the year with a couple successful trades but the last one was a stinker and a loss. Keystone bot FCX again giving it another whirl. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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