Reasons for likely short pull back:
FCX is encountering a historical/psychological resistance @ ~$40.
FCX is at the top of its current Pitchfork price channel.
FCX is overbought (above 75 on RSI).
Reasons for likely recovery:
Fundamental Analysis - there is a shortage of copper for surge in post COVID extreme lockdown manufacturing.
- copper is an essential element in the production of most electronics, especially EV/alternative energy - also crucial in normal combustion vehicles
Sentimental Analysis - FCX just avoided being purchased by a faltering company Barrick Gold, investors responded well to that
- industry news points to continued increases in demand for copper in EV/alt energy
- FCX just posted a surprise positive 24% in earnings with no signs of diminished performance moving forward
Technical Analysis - FCX has established a strong price channel since its low point during the initial COVID sell off
- FCX has been over 70 on the daily RSI 7 times since the COVID sell off and has risen in value over 600%
PLAN
Entry Price: $32
TGT Sale Price: 1st - $44, 2nd - $49, Final- $55
Stop Loss: $24 or breaks the price channel
Max Position Size: 5% of portfolio
Note - recent administration tax executive order may cause more severe market correction. Watch for signs of more dramatic pull back before entering long.
FCX is encountering a historical/psychological resistance @ ~$40.
FCX is at the top of its current Pitchfork price channel.
FCX is overbought (above 75 on RSI).
Reasons for likely recovery:
Fundamental Analysis - there is a shortage of copper for surge in post COVID extreme lockdown manufacturing.
- copper is an essential element in the production of most electronics, especially EV/alternative energy - also crucial in normal combustion vehicles
Sentimental Analysis - FCX just avoided being purchased by a faltering company Barrick Gold, investors responded well to that
- industry news points to continued increases in demand for copper in EV/alt energy
- FCX just posted a surprise positive 24% in earnings with no signs of diminished performance moving forward
Technical Analysis - FCX has established a strong price channel since its low point during the initial COVID sell off
- FCX has been over 70 on the daily RSI 7 times since the COVID sell off and has risen in value over 600%
PLAN
Entry Price: $32
TGT Sale Price: 1st - $44, 2nd - $49, Final- $55
Stop Loss: $24 or breaks the price channel
Max Position Size: 5% of portfolio
Note - recent administration tax executive order may cause more severe market correction. Watch for signs of more dramatic pull back before entering long.
Note
This one seemed to work out very well - could have been sold for $44 on 7May21
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.