A week ago, we noted to our members to keep a close eye on Freeport-McMoRan Inc. (FCX).
The chart pattern argued for the price to thrust into a new upleg after completing a 3-week correction.
The correction, from 15.27 on July 26 to 13.81 on Aug 11, held key multi-month support, and positioned the chart into a bullish cup-and-handle formation.
Given the compelling technical set-up -- portending greater demand and inflationary pressures in copper and others metals -- we added FCX to our model portfolio on August 17 at 14.47.
The attached shows the pattern, which included a bullish flag and the start of what appeared to be break.
Five days later, JPM issued a bullish report about base metals prices, noting it is looking for better earnings in companies CENX, AA, TECK...and FCX!
Meanwhile, Jefferies strategist Sean Darby and team noted that materials stocks are "experiencing and enjoying underlying pricing power, a weak dollar, an expansionary China budget and M&A," even amid fears that President Trump’s infrastructure plans will be at delayed or eventually diluted.
All of which helped spur a rally to a high of 15.46 on Tuesday August 22, with the stock closing at 15.07.
Where is FCX headed next?
FCX thrust above its Jan.-Aug. resistance line on Tuesday morning, taking out its prior rally high at 15.27. As long as FCX can sustain above 15.00, the price structure projects directly to 16.60-17.00 next.
On Monday morning, November 13, 2023, a full 5 trading sessions before the approaching November Options Expiration (OPEX) (11/17/23), I posted my chart-based commentary for our members:SPY-- Considering that Friday is November Option Expiration, where are the "magnetized strike prices" as we start OPEX week? Based on my attached Hourly Chart, the magnetized strike price zone spans from 436 to 441. Should SPY take out the upside barrier of 441, then the follow-through outlier magnetized target could be as high as 450 before or on Friday.
On October 23, 2023, ten days before the November 1st FOMC meeting and policy statement, I posted the following commentary about the downward-spiraling TLT (20+ year T-bond ETF):My attached 4-hour Chart of TLT shows that the relentless and near-vertical downtrend that commenced at the beginning of August from around 100 hit a new long-term low at 81.92 this AM, positioning it in my intermediate-term optimal downside target zone from 80 to 82.
On the afternoon of September 25, Mike Paulenoff posted a warning signal to MPTraders members about the developing acute oversold condition in RTX (formerly Raytheon Technologies), writing:"RTX (formerly Raytheon Technologies) hit a new multi-month corrective low of 71.02, down 33% from the 4/10/23 post-pandemic High at 106.02. Although RTX has violated my optimal target window of 73-75, the stair-step corrective pattern off of the 4/19/23 high at 104.
On October 3, Mike Paulenoff posted the following "Heads Up!" about GLD (SPDR Gold Trust, ETF) for MPTrader members: "GLD has pressed to an important technical inflection window from 169.50 down to 166.30, from where I will be expecting corrective downside exhaustion off of the 5/04/23 high at 191.36, and new buying interest. From a nearer-term perspective, given the acute oversold but CONFIRMED Momentum reading of 17.16 an hour ago, my preferred scenario argues for another loop down that marginally violates today's low at 168.
On September 28, 2023, with NVDA trading at 429.31, I told MPTrader members that my work is warning me about a complex technical setup that argues for a prolonged corrective scenario prior to a resumption of dominant uptrend strength. I posted the following:My near-term pattern and momentum work argue that since its 9/21/23 corrective low at 409.