Wednesday, 4 April 2012

FCX - miners floored?

Yesterday I looked at little Hecla, lets look at one of the worlds giant miners... FCX.

FCX, daily, near term

We have a possible reversal candle today, $37 might be the floor - its certainly a good level for a near term stop. Have we just created a giant bull flag? We'll need to see $39/40 by early next week to stop this pretty fierce down trend.

Even if we do get a bounce next week, the 50 and 200 day MAs are converged at $42. It will be a really major achievement if we see FCX break above $43 in the next week or two.

Certainly, those looking for Sp'1440 - and higher, will want to watch FCX closely, it'll be a good sign if the  bull case is still intact.

Conversely, if FCX fails to hold, a  move under $34, would open the door to a test of the $29 level from last October.

Good wishes!