FCX: Short-term Support And Resistance

From yesterday morning:

"Given yesterday's bullish Ascending Triangle breakout, it seems reasonable to expect FCX to get to 51.275 - 51.29 at a minimum. That price area is about 68% of the 52.28 target that is IN PLAY. Rather pitiful if The Bulls can't at least do tha-a-at. LOL."

It looked like The Bulls were going to get there yesterday afternoon on the Cup & Handle breakout above 50.58, but The Bears stepped in with a 1-2 Punch: The H&S Top and The Bearish Rising Wedge (seen in the next chart), so The Bulls came up short at 51.00, the morning high.

That's fine. The Bulls have some room for a pullback, between here and Trendline #2-#4, the bottom of the Falling Wedge. In fact, if that trendline where The Bulls formerly met up with Quintuple resistance were to be successfully retested, that wouldn't be bad at all. That would establish "former resistance, as support."



From yesterday afternoon:

"The 50.35 low of The Handle (and The purple Symmetrical Triangle) is important support."

After a pattern breakout, in this case The Symmetrical Triangle, in purple, we don't like to see the low of that pattern get taken down. The upside target for this pattern got MADE (add twenty-three cents to the point of the breakout), but this pattern also was the "handle" of the Cup & Handle formation.

We can see how the significance of that 50.35 low played out after the failed Cup & Handle breakout: (1) 50.34 was the low when the H&S Top target got MADE; and, (2) 50.33 was the low when the Bearish Rising Wedge (pattern in orange) broke down, and the target of 50.34 (the bottom of the pattern) got MADE.

Additionally, 50.33 is now validated support (white arrow) since FCX bounced higher off the trendline connecting the 50.35 and 50.34 lows.




Coming off the 50.80 high of the H&S Top, at White #1, the late day pattern is a Descending Triangle, with the Bearish Rising Wedge nested within it.

Near-term DOUBLE RESISTANCE for the Descending Triangle, interestingly, looks to be right about 50.58 (yellow arrow), which were the highs of the Cup & Handle: (1) It's the bottom of the broken Rising Wedge (Orange Trendline #1-#3); and, (2) it's the top of the Descending Triangle (White Trendline #1-#3).

If FCX should rally to roughly 50.58 and fail there, then break the 50.35...50.34...50.33 validated trendline, that would suggest about forty-five cents of downside, so roughly 49.90 IN PLAY.

If FCX should rally or gap above 50.58 and hold above it, that would put the Cup & Handle target of 51.35 back IN PLAY unless/until something else develops, e.g. the H&S Top and the Bearish Rising Wedge showing up late yesterday afternoon.