FCX: Two More Bullish Falling Wedges

After the early morning rally, FCX sold off and formed this Falling Wedge. That looked quite nice, so I entered long ahead of the breakout, at 56.85. Stop loss: below the low, #4.



The previous highs of the pattern, prior to the breakout, were 57.29 and 57.36. FCX has been doing a lot of "pattern morphing," i.e., changing from one pattern to something else, so in anticipation of a possible morph, I sold at 57.29 with the idea of getting back in on a pullback for a possible Right Shoulder of a Bullish Inverse H&S pattern. I was able to buy back my position for 56.98.



The subsequent "morph" into this Decending Triangle was NOT what I wanted to see. I mentioned just recently that Descending Triangles are not always bearish, as some sources will tell us, but they do tend to be bearish, particularly if the trend is bearish.

FCX put in an identical low, right at my stop loss, and right a strong support, the 56.65 top of the H&S Top in the Hourly chart that got taken out to the upside, however the "possible" Bearish Wolfe Wave that we discussed this morning still was a threat, and even more of a threat if this Descending Triangle broke down.

I decided to sell the next rally, strictly as a money management decision so that I could come out of these two trades with a decent gain, and sold at 56.79 for a loss.




I expected that I was finished trading FCX for the day, but shortly before the final hour, FCX broke out of ANOTHER Bullish Falling Wedge, so I bought my position back for 57.22 and 57.23. I didn't expect much with an only an hour remaining in the session, but Bears were caught short an upside technical breakout, so they would be under pressure to "buy to cover" if FCX could capitalize on the breakout and move up toward resistance, represented by the horizontal red line, where I planned to sell.

The Bulls got the job done, and I sold my shares for 57.46.

NOTE: The Descending Triangle did NOT end up being bearish.



Gain on the 3 trades: $1,150
Gain on the 14 FCX trades since March 23: $12,050.

EDIT: Forgot to add that I'm still long the 500 shares that I purchased in my other account yesterday, for 56.58.



The Bearish Wolfe Wave possibility remains as a threat to The Bulls. The slope of validated trendline #2 - #4 is 0.32 per session, so we "move the chains" and that trendline comes in tomorrow, April 8, at 56.01