Copper and gold miner Freeport McMoRan (FCX) continues to climb back up the rankings within the Green Favored Zone of the SIA S&P 500 Index Report, bouncing back from a brief drop into the yellow zone. Yesterday, the shares finished in 64th place, up 20 spots on the day and up 104 places in the last month.
A major breakout is underway in Freeport McMoRan (FCX) shares this week. For the last two months, the shares have been consolidating previous gains between $29.00 and $39.00. Through this time, except for one breakdown attempt which was quickly rejected, the shares underlying uptrend of higher lows continued.
Yesterday’s all-time high close above $39.00 completed a bullish Ascending Triangle pattern, signaling the start of a new upleg. Based on a measured move from the triangle, next potential upside resistance on trend appears near $49.00, close to the $50.00 round number. Initial support appears near $37.50 then $35.00.
Freeport McMoRan (FCX) shares have staged a strong recovery off of last year’s bottom, particularly between June and February. In recent weeks, upward momentum had slowed with the shares consolidating gains in a higher range. Yesterday, FCX broke out to a new high and completed a bullish Double Top pattern, signaling the start of a new upleg on trend and confirming a recent Triple Top breakout.
Next potential upside resistance tests on trend appear near $47.25, $50.15 (near the $50.00 round number), and $54.30, all based on horizontal and vertical counts. Initial support appears near $35.80 based on a 3-box reversal.
With a perfect SMAX score of 10, FCX is exhibiting near-term strength across the asset classes.
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