Saturday 12 January 2013

FCX - approaching massive resistance

Freeport Mcmoran Copper and Gold (FCX) closed the day -0.8% @ $35.00. FCX is now approaching very strong reinforced resistance in the upper 35s. A move lower (however brief) seems very likely in the coming week or two.


FCX, daily


Summary

FCX remains one of my favourite companies..not least because its a miner. With its recent double acquisition of two Oil and Gas service companies, it is now very much in the 'black gold'...as well as the ordinary gold business!

There is major gap resistance from the early December snap lower, along with both the 50 and 200 day MAs.


The cross of doom for FCX ?

A death cross is very likely for FCX next week, as the 50 day MA breaks beneath the 200 day MA, somewhere around $35.50.  Even if price action is flat, the underlying statistical averages will surely cross.

Whether the algo-bots take this as an excuse to snap FCX sharply lower..is hard to say, but it sure is not a positive buy signal in the very near term!






Near term downside targets would be $34 and then $31, although if the main indexes fail to go any lower than sp'1425, I don't expect the latter to be hit.

FCX remains one of the finest companies out there, in an industry that actually producers something of real value to the world.