Below is what we discussed yesterday morning (9:47 AM ET)... Freeport-McMoRan Inc. (FCX) has climbed from 12.62 to 13.46 in the past 24 hours... Below is the updated chart work, with a next upside target of 13.50/60, then 14.90-15.20
Time to start watching FCX very closely after Monday's 4-month marginal new low at 11.91, followed by a climb to 12.50/60.
Let's notice that the new low violated its Jan 2016- present support line, which also doubles as the lower-boundary line of a 15-month bullish channel (higher highs and higher lows), but once the line was violated, FCX did not follow-through to the downside.
Let's see if FCX can claw its way back above the lower channel boundary line in the vicinity of 13.00.
If yes, then my channel work will be "warning" me that a negative traverse of the entire channel width off of the Nov 23 high at 16.42 likely has ended.
In English, that means that a major corrective period could-- likely is-- complete (16.42-11.91).
Why do I use 16.42 rather than 17.06 as the high? Because my momentum gauges peaked at Nov 23, 2016, high at 16.42, which I consider to be the "orthodox high," and leads me to the supposition that the Jan 24, 2017 high at 17.06 was part of a complex corrective period that now looks to be at or near exhaustion.
Let's see if FCX can trigger an initial positive signal with a climb and close above its 20-DMA, now at 12.69.
If accomplished, my work will trigger renewed interest in starting another long position in our Model Portfolio... ahead of positive fundamental news about the unresolved "Indonesian Mine Problem."