From yesterday on GOOG:
"Key Resistance overhead is roughly 509-515."
Tuesday's late afternoon short squeeze got completely unwound in the early going yesterday morning. GOOG retraced all of that rally. The Bulls dug in, though, then managed to climb back out of that hole to a session high of 507.80, just below the bottom rung of Key Resistance, at 509.00.
In FCX, the 2011 Falling Wedge target of 30.61 officially got MADE on September 30 and that target was exceeded at bit at the October 4 low of 28.85.
As often is the case, the analyst community, in general, got this one terribly wrong at the July top, giving it upgrades and booyahs and such. That's usually what occurs at the top of a Bearish Wolfe Wave, the hallmark of which is to catch the majority of players "wrong-footed" at the upside Fakeout/Breakout, and boy, did it! That Bearish Wolfe Wave was more like a Bearish Tidal Wave. FCX got sent down nearly 50% while the benchmark SPX has been down only about 20% since July. UGH.
When targets get MADE, particularly a sizeable one like this 2011 Falling Wedge target of 30.61, they can continue much lower, but they sometimes reverse somewhere near the target, or at least have some kind of rally. The rally can come from "out of nowhere," like the Tuesday afternoon short squeeze in GOOG, or they can come from something that is identifiable in the charts.
In the daily chart, FCX put in a Bullish Key Reversal candle on October 4, which also was one of Erik Hadik's (sp?) 3-Close Reversal candles, meaning that the stock put in a new low for the move, then reversed and closed higher than the closes of the three prior sessions.
After something like that, we want to see signs of follow-thru that suggest that some kind of low might be in, if not THE low for the move. We got some of that in FCX yesterday.
FCX sold off at the opening gong, but came right back and climbed steadily higher. Early afternoon, it formed and broke out of this Symmetrical Triangle, putting an upside target of 34.00 IN PLAY.
On the pullback for a retest of the breakout (white arrow), I bought 5,000 shares of it at 33.46.
After the retest, FCX then formed an Ascending Triangle (in yellow) that had a Triple Top at 33.62...33.62...33.62, which broke out to the upside, giving testimony to the fact that Triple Tops are not always bearish. That breakout put 33.87 IN PLAY, in bit below the Symmetrietcal Triangle target of 34.00.
33.62 (highs) - 33.37 (low) = 0.25 + 33.62 = Target: 33.87 IN PLAY.
I wasn't best pleased with "Ye Olde Knuckle-biter" pullback below the 33.62 highs of the Ascending Triangle (white arrow), but I liked Tuesday's Key Reversal in the daily chart and these two pattern breakouts in the intraday well enough that I sat for it, figuring it for a minor shakeout (a move against your position in an attempt to get you to throw in your hand). It was.
After the shakeout, a THIRD bullish pattern emerged and broke out, the Symmetrical Triangle (in orange). Lovely. FCX rallied out of that and I sold my 5,000 shares at the more conservative target of 33.87.
On that move off the Triple breakout, FCX got only to 33.97 (white arrow), three cents shy of the 34.00 target IN PLAY, then had a selloff. I had finished for the day, but the Bullish Inverse H&S breakout (pattern in green) was a FOURTH bullish breakout on the afternoon and was another nice entry long for the 34.36 target that went IN PLAY and got MADE near the end of the session. The high was 34.45.
Gain: $2,000.
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