FCX: Bullish Inverse H&S Neckline

(Click On Charts To Enlarge. Click On Them Again For Further Enlargement, Then Use Back Arrow To Return To Narrative).

We can see from this Time & Sales chart that the Ascending Triangle target of 54.28 and the Falling Channel target of 54.32 got MADE in pre-market, the latter within two pennies. If I hadn't sold yesterday afternoon, I would have used this opportunity to "take profits, or at least 'some' profits when targets get MADE."

A good job of it for anyone who did sell in pre-market because FCX never even traded in the 54.00's during regular market hours. The high near the opening gong was only 53.98, then FCX went down for another retest of the Bullish Inverse H&S neckline basis the daily chart, currently at 53.02.



I bought back my core shares that I sold for 56.64 on April 11 when FCX hit the neckline this morning, at 53.02. FCX rallied a bit, then came back and tested the neckline again. We don't want to see too much of that retesting and retesting. The Bulls should look sharp and take the thing higher. This was the second day in a row of retesting that neckline, and if the Bulls couldn't get this thing off the ground, the Bears eventually would break through the neckline.

At the third circle, the Bulls retested the neckline again! No! No! Like we saw yesterday when the Bulls retested the lows of the little Rectangle in the 53.40's THREE times, that failed. Triple and Quadruple Bottoms are not rated to hold, especially in a stock that is in a serious smackdown, like FCX has been off the 58.75 high. On that SECOND retest of the neckline, my trading plan quickly changed to "Get outta here on the next rally, or if the Triple Bottom gets taken down."

I threw it in at 53.52 on the next rally. FCX went only five cents higher after I sold, to 53.57, then broke below the Triple Bottom and tanked. UGH.



Gain on the session: $250
Gain on the 20 trades in FCX since March 23: $15,000

I am reminded of the Wall Street Olde Guarde "Buy And Hold" crowd, who say that trading is a waste of time and that we never can beat the "Buy And Hold" stragegy. Well-ll, my first trades in FCX in my two accounts on March 23 were at 53.72 and 53.78, so if I had bought and held, I'd be under water at today's close of 52.31, rather than have a decent gain of $15,000. I think that I've at least presented a case that trading "can be" successful if we follow some these patterns that we've looked at over the past three weeks, and if we know a little about trendlines, support and resistance.



After FCX broke the Triple Bottom this morning, it tried to get back through there, but got rejected. "Former support 'should be' resistance," and it was. FCX failed a retest at the white arrow, then tanked.

FCX has closed well below the 53.02 neckline basis the daily chart, at 52.31, so The Bulls have a good bit of repair work to do. They are trying to establish a pattern here, below 52.50 (horizontal red line). If they can break out of it to the upside, the neckline of the Bullish Inverse H&S pattern in the daily chart, currently 53.02, is next resistance.