FCX: Morphed Ascending Triangle

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From May 9:

"If Friday's low gets taken down (White #4 with the question mark in the second chart), or if White Trendline #2-#4 in the second chart gets violated by more than a tad, this Ascending Triangle possibility, as it stands, is scrapped."

FCX had fallen back below the 51.77-51.79 top of the Ascending Triangle (red circle) Tuesday afternoon, and closed there. Yesterday morning's gap down below Trendline #2-#4 negated the Ascending Triangle and was "The Tell" that buying FCX for the dividend capture wasn't any bargain and that the Ascending Triangle had morphed into this Rising Channel, that broke down at the open:







Also from May 9:

"Targets that are against the trend are less likely to get MADE, and the trend is bearish. The bottom of the Kumo (Cloud) comes in today, May 9, at 52.21, so 52.21 - 54.02 is Kumo resistance."

The highs at the top of the Rising Channel (White #4) were 52.30 and 52.28, right at the bottom of Kumo (Cloud) resistance.

Yesterday's action in FCX is an example of the difficulty involved with playing bullish breakouts in charts that are bearish. The pattern also is similar to the Ascending Triangle in Silver Wheaton (SLW) that morphed into a Rising Channel, then broke down at 44.44 in mid-April (see charts on SLW posted May 4 for most recent review of that pattern in SLW).