Freeport’s Defining Moment

You know that FCX continues to be one of my main broad market tells, and it has served me well over the years. After the stock has recently seen its share price split, we can see on my annotated daily chart below that Freeport is at a significant crossroads. The stock broke down two weeks ago, and has seen a fair amount of indecision ever since. Yesterday, price was rejected from the gap fill up to that breakdown level. Moreover, the stock is printing a rather indecisive candle today, right at the convergence of the 20 and 50 day moving averages. Finally, note the possibility–again, the mere possibility–of a head and shoulders topping pattern.

Despite the increasingly accepted view that commodities are going higher in a seemingly straight, perpetual line, Freeport needs to be watched closely here with an objective eye, as complacent bulls may be tempting fate.

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