Tuesday, 25 October 2016

FCX - post earnings swings

Whilst the broader market closed moderately weak, there was some notable price action in Freeport McMoran (FCX), which settled +3.6% @ $10.55. The daily close was 1 cent below first key resistance of the 50dma. Things only turn 'conservatively bullish', on a break above the $14 threshold.

FCX, daily

FCX, monthly


*the closing daily candle was a touch bearish... having cooled from the $11 threshold, and settling a touch under the 50dma.

Earnings were very mixed. It could be argued that FCX has tried - to some success, to stabilise itself after a rough couple of years.

Freeport still has almost $19bn of debt, which is clearly a problem for a company with a market cap of $14bn.

*For further details.. see: http://finance.yahoo.com/news/freeport-mcmoran-reports-third-quarter-120000897.html

Seen on the giant monthly cycle, price structure is threatening a large bull flag. First upside would be around $17, which is around 60% higher. That will clearly require a decisive breakout in copper prices.. well above $2.40, and probably to around the $3.00 threshold.