One of the world’s premier miners of Dr. Copper, Freeport McMoRan, has been a very good broad market “tell” since 2008. Rather than following it tick-for-tick, though, I find it useful to monitor the broad technical picture, to see if there are any divergences to equities as a whole.
Currently, Freeport is testing its weekly chart support trendline. The overall pattern of higher highs and higher lows since the October 2011 bottom in equities remains intact, though. Given the steep run higher Freeport saw in January, completely confirming the broad stock market move, it did have some room to come in, and it has done just that.
I am looking for this area to act as a study support zone now. If the bulls cannot defend it, only then will I look at this as some sort of bearish divergence. In other words, I expect next week to be a big test.
8 Responses to Broad Look at Freeport as a Tell
Really want to hold on to $42 by the close
$42 held! Hopefully ready to pivot back up next week
Thoughts on the PMs?
Similar to FCX. Need to hold after these pullbacks next wk.
the photo with its hills of cultivated ledges looks like the inverse to an open pit mine, not a coincidence is it?
Probably a reclaimed strip mine. They’ve done some nice things with them, not the least being new wildlife habitats…
Nice picking up FCX, although I think you could also look at the price o’ copper (the commodity) as another “tell.”