On March 20, I posted the following technical alert to MPTrader members:
"FCX (Freeport-McMoRan)-- Technically, let's notice that FCX appears to be in the U-Turn phase after the completion of a 7-week 25% corrective period that successfully tested the 200 DMA last week. If the commodity complex has fully corrected its post-pandemic-inflationary spiral bull phase (think Crude Oil, down 46% from its 2022 highs), then FCX with its concentration of Copper, Gold, Silver, and Oil is poised for a resurgence of strength... As long as any forthcoming weakness is contained above the 200 DMA (35.12), I am expecting the price structure to challenge key near-term resistance from 39 to 41, where the developing rally pattern will inform us if FCX is in the grasp of a budding new upleg... Last is 37.51..."
Since the alert, FCX went on to climb to a high at 43.46 this past Friday (April 14), a full 15.9% above the level it was trading at when we first alerted MPTrader members, and nearly 25% above its March pivot low at 34.88. See our daily chart below, which shows the near-vertical price path taken by FCX since the update.
Along the way, I posted a half dozen follow-up posts about the upside technical progress of FCX, as well as alerting members to supportive fundamental factors that could provide a compelling background story for a bullish period for the copper market in particular, and for the industrial metals in general. These factors include the demand implications of the re-open of the post-Covid China economy, the relative supply differential of copper globally, underinvestment (Cap-Ex) of the global mining business in new mining ventures, and potentially game-changing demand for copper required to ramp-up the manufacture of EVs around the world.
Indeed, FCX could well be in the sweet spot of a budding bull market for months or years to come.
What's next for FCX ahead of a possible pause in the global rate hike cycle, and especially heading into FCX earnings this coming Friday, April 21?
Join me and our MPTrader member community this week for our constant intraday discussions about the technical and fundamental (macro) setups for FCX as well as for many individual stocks, macro indices, ETFs, commodities, precious metals, and Bitcoin.
