Freeport-McMoran Investors Should Ride the Current

This post was originally published on this site
Our last review of Freeport-McMoRan ( FCX) was Feb. 22 when we wrote that “Even though there is a fair amount of talk about a new commodity ‘super cycle’ on the internet, I think money management and trade management is always a good idea. Traders who are long FCX have made nice profits in a short period of time. Take some profits. Raise sell stops to $31 and raise your price target on the balance of your position to $55. A decent pullback will probably be a buying opportunity.” 
Let’s check out FCX again. 
In this updated daily bar chart of FCX, below, we can see that prices weakened in March and should have stopped traders out at $31, unless they used a close only order. FCX has resumed its advance and survived a number of tests in April of the rising 50-day moving average line. Prices are also trading above the rising 200-day line. The On-Balance-Volume (OBV) line has been relatively stable since early January and is not too far from making a new high to confirm the price gains. The daily Moving Average Convergence Divergence (MACD) oscillator turned lower in May but is still above the zero-line.  
In this weekly Japanese candlestick chart of FCX, below, we see a bullish picture and no top reversal pattern at this point in time. Prices are in an uptrend above the rising 40-week moving average line. The weekly OBV line shows slightly higher lows the past few months suggesting that buyers of FCX are still being more aggressive than sellers. The MACD oscillator is bullish, but needs a boost to the upside. 
In this daily Point and Figure chart of FCX, below, we can see a potential upside price target in the $51 area. 
 
In this weekly Point and Figure chart of FCX, below, we can see a new and higher price target in the $77 area. 
Bottom line strategy: Traders who are still long FCX are in the driver’s seat. If you have no position in FCX you could go long at current levels and risk below $37. $51 is our nearest price target and $77 is a target that may be reached in the next year or two.