A unique set of support lines came into play in the chart below on 9/29/2011, which prompted me to share the chart as a quiz. This leader found itself on long-term support, after a 50% decline in a matter of months. (See post here)
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Below is an update to the quiz, that reflects this leader has rallied 35% off of support and now finds itself at falling resistance…
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With key broad market index’s at resistance/top of their flag pennant patterns (see post here) what this leading stock does at resistance, could be just as important as what it did at support last fall!
FCX may not be in the headlines on a daily basis… it does remain a headliner in my eyes, per how important its price action is to the broad markets. Momentum in the broad market remains a positive and this resistance DOES NOT have to turn back FCX. If FCX can plow through this resistance it would be a big plus for this stock and the broad markets!
One weeks action doesn’t make a trend…the price action of FCX two weeks ago though does raise a little concern, since it created a heck of a large bearish wick up near the top of its channel. The broad market needs FCX to break resistance, so keep this stock on your radar screen along with the headlines.
Sonny…Great question.
I don’t have the answer to that one…maybe some of the viewers would know!
Any comments that seasonal influences could impact FCX?
Chris
Chris, Since FCX is a commodities based company can the price be subject to seasonal influences? Thanks.
Sonny
Belsha…As support was a good place to go long with a sell stop below support the first of October, you are correct that the opposite is now something to consider.
On 1/26, FCX created one of the largest single day bearish wicks I’ve seen in a long time. FCX was up around 7% on the day before losing almost all of that gain. One day does not make a trend, yet that single day action remains something even Rodney Dangerfield would respect!
The big bearish wick was so large that day, it is reflected on the weekly chart posted today.
As always, your thoughts and comments are appreciated,
Chris
Could FCX be creating a head and shoulders pattern? If FCX goes sideways for a while before falling back to the neckline, would this be a great opportunity to short FCX/copper or buy SMN?