Reader “alf44” points out a CNBC segment from Monday with noted technician John Roque, in which Roque offers a bearish outlooks on equities. In particular, he argues that Freeport McMoRan, as an excellent proxy for copper and economic activity, is poised to head much lower from current levels. You can watch the video by clicking here.
Regular readers of mine know that I continually analyze Freeport due to its excellent track record since 2008 of being a market leader and a true “tell.” I rarely trade the stock, but will not hesitate to make a bold call when I see fit, such as in this video that I made last January regard Freeport’s monthly “dark cloud cover” pattern.
At this time, it is tough to make a bold call. As you can see on the current monthly chart below, all was well for the past several months, with Freeport consolidating in a relative healthy way. The month of August, however, has now created a nebulous situation with a nasty-looking bearish marubozu. Price is hugging a simple support trendline dating back to its 2008 lows, after being rejected from prior all-time highs back in January. All of the short/intermediate-term support levels on the daily and weekly charts have been lost, so this truly is the last stand for the bulls if they are going to defy Roque’s bearish call.
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The John Roque video doesn’t work.
Yes it does. Try again.
That’s strange. That link doesn’t work for me. The other one does.
i concur, it does not work
Ahh.. now it does. I have to put my cursor on the word here.
not strange five-oh, the 1st link is to a facebook “like “script, not a url…that is the problemo
Click on The word “here”
it is the social network shortcuts box messing up the page code for the link, but yes if you just clik the word “here” it works
I recall that a few months ago, you had said something to the effect of, if FCX closes strong below 46, it would be very bearish for the market. I agree with that. But if it breaks down below the monthly trendline you show above, that’s really gotta be it. Unless we start looking for another “tell.”
Thanks for the post !
FCX is also right at the HIGHS set in 2010 @ around the $40ish level … should provide some decent Support !
We shall see !
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Thanks again, chess !!!
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