Tuesday 23 October 2012

FCX - breaks key rising support

Freeport McMoran (FCX) closed almost 4% lower to close @ $38.98. It has broken key rising support from the late July lows. There could be major downside across the next few weeks, even a test of the July $31 low.


FCX, daily


Summary

With the equity and commodity markets set for further weakness in the days..and possibly weeks ahead, FCX is similarly set for some considerable declines.

First soft target is the gap-fill of 37/36. That looks a given in the immediate term.

Secondary target is in the 34 area, this is a bit of a choppy price-action zone.
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If.and it is a big 'if', the main indexes can fall...to sp'1325..then I'd assume FCX will be at least down to $34. If the SP' can break to 1200 by year end, then we are very likely looking at FCX breaking the July lows. A brief spike low of $25 even seems viable.

FCX remains one of my top 5 companies in the world, but..with global economic weakness, and a US recession now very probable, it would seem some very strong price declines are viable across the next few months.