FCX Freeport-McMoran and Copper Daily Charts; Textbook W Pattern Bottom

FCX has always been known to move in correlation with copper since this is a main mining commodity of the company. A few years ago, Freeport-McMoran diversified into other minerals and metals mining, and businesses, but it is always known for its copper correlation. The daily charts above show FCX and copper moving in lock-step. Copper receives buoyancy on the US-China trade deal hype and FCX also participates in the upside fun.

FCX prints a textbook W pattern bottom pattern. Keystone always says these are powerful bullish patterns. If the W forms under the 50 and 200-day MA's, it is uber powerful. The FCX W forms durng August-October and it breaks out in November. The vertical distance of the W is from 8.5 to 10.8 so this is 2.3 difference. Thus, the upside target is 13.1 if the 10.8 level gives way to the upside. The 10.8 was breached, note how price came back a couple times to back kiss the breakout line which is all expected behavior, then it truly decided to head higher and took off like a rocket as President Trump says the greatest trade deal in the history of mankind, Phase One, is done. Price tags the 3.1 target and the pattern is satisfied.

The blue stars show how price was extended to the downside below its 20-day MA below the 50-day below the 100 below the 200 requiring a mean reversion higher, which occurs.

The FCX weekly looks like it has some buoyancy remaining but the big gains already look like they may be in the rearview mirror. Price may bump through 13.5-15.2 in H1. The monthly chart is encouraging so FCX would be expected to be the same price or a bit higher a couple months from now probably 14-ish or so. Keystone does not own FCX right now.

If you are a budding technician, consider playing the W pattern bottoms since they are low-risk investments. You buy on the breakout, then buy on the back kiss, then buy when price overtakes the initial price breakout. There are scans that will find the W patterns for you, or simply cycle through chart after chart looking for them. Look for W's under both the 50 and 200-day MA since they are the most powerful ones. Keystone knew one trader years ago that traded W's universally. Humorously, looking at the chart above, that is a very nice bottom that rivals Jaylo's. 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.

Note Added 10:27 AM EST: CS downgrades FCX this morning a kick in the copper producer's backside. FCX is trading dead-flat at 13.44. It was down in the pre-market on the news but appears to have shrugged it off. FCX will likely hang in there at 13-15 over the next couple months or so. Copper futures are flat as well, as you would expect from the kissin' cousins.