looks exhaustedlumber futures getting dumped, copper the next shoe to drop. Volume just getting a shellacking. Time to lock in profits unless you're looking for red candles to accrue moneyness.
The 30s looking really indecisive.
FCX trade ideas
dr. copper gap filled. party's overwe get it, copper is having a moment. FCX tho is trading at a whack multiple. It's primarily rallying because the ^TNX isn't, once the cost to service 10 year debt goes up, this stock goes down. They aren't the only copper game in town, in fact they're #3. #1 is owned by the Chilean government, and #2 is BHP, that currently trades at under 30x, roughly 2/3 of what FCX does.
Bullish commodities, but short dumb trades. This thing will rip your face off, slap a chart of the ^TNX alongside it and buckle up 🤙🏽
Rolled into the weeklies puts on this, will continue rolling out if rates rise and this thing peaks, which I believe it's close to. All that said, nice run, good stock to swing trade if you can time it right
FCX breaks upper R from 2014 with accelerating uptrendFCX took a bold move above upper R line. I want to see more volume for a move like this to confirm so I will wait to see how serious the bulls are.
R line is from 2014 at a previous peak. Trend is accelerating and well established. RSI peaks are divergent with price. Makes me hesitate. Might be corrected with new peak formed from breakage.
Wait for bull buy in and increased volume.
Copper Breaking OutNow that inflation is undeniable, the commodity trade is becoming obvious (and crowded). FCX is trying for an all time high right now. One strong day is all thats needed to punch through resistance and confirm a rally. SCCO is a lagging copper miner here if you want to buy this move lower.
Freeport Bouncing at the 50-day SMAFreeport McMoRan has steadily rallied since the March low. Now the copper miner may be ready to break out of its longest consolidation since the surge began.
One big feature on the chart is the high basing pattern above $30. It’s recently made higher lows and tried to climb up the right side of that basin.
Price has also held the rising 50-day simple moving average (SMA). It previously bounced along that line in September, January and March.
Next, FCX has broken a downward-sloping trendline along the February and March highs. Last week it bounced at that line, which could mean that old resistance has become new support.
Copper has been one of the biggest gainers since the pandemic as years of stagnant production growth collides with a global electric build out. The red metal has been a major green-energy asset. FCX is one of the most straightforward equities to play the trend.
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a miner valued like a biotech trades at 87x, I mean, BHP trades at what ~14x. Trend is still to the upper right quadrant, been playing straddles as it zig zags in no man's land. Sold my calls before copper finally decided it wasn't the most valuable commodity in the world, have a couple puts still open, would like it to punch below it's pitchfork all things being equal post earnings it might regain it's upward momentum. But notice how it likes to sell off when the 10 year ramps up. Know why? - It trades at 87x!! wtf...
FCX on commodities/copper risingFCX is currently sitting above a support area so we wouldn't call this the absolutely best trade.
That said, maybe a 2% max trade risk on it hitting the Stop-loss while keeping in mind that other ideas are available and better.
However, if it does make a strong move off support, moving the TP higher and SL to breakeven will turn an ok trade into a great Reward/Risk trade.
This is also a good re-entry or a place to add to a buy and hold position for those of you that jumped on during the previous published idea.
$FCX PutNot a top priority play but potential is there. Looking at $FCX PUTs due the decreasing bullish volume and that it has rejected off this area before. Will be looking at how copper is doing in the morning before market opens. This will most likely be a day trade if I get in since earnings are this week.
