FCX: Two Levels Of Key Support Broken

(Click on charts to enlarge. Click on them again for further enlargement. Use left arrow on your browser to return to the narrative).

From yesterday:

"...the 51.95 gap from the session prior to the release of earnings still is IN PLAY from the technical breakdown in the intraday chart above."

KEY SUPPORT near 53.00 got broken again in yesterday's session. The 51.95 target also got MADE, and then some.



Also from yesterday:

"So-o, that 51.92-51.95 area is next KEY SUPPORT on any further selloff."

51.92-51.95 has been broken on a closing basis, so that's two levels of KEY SUPPORT that were broken in yesterday's session. We now are left with "who knows what else" (my final comment at the bottom right hand corner of the first chart). Basis this Ichimoku Kinko Hyo chart ("At A Glance...The Table Of Balance)," FCX is in Bear Territory with The Smackdown Low of 49.71 remaining as last nearby support.

The Symmetrical Triangle in black is a hypothetical of how this "could" turn out bullish. Data Point #4 could go lower, thus the question mark, in which case we'd have to "move the chains" for Trendline #2-#4.

As the chart stands, though, FCX is in Bear Territory with two levels of KEY SUPPORT broken.




By late morning, FCX had settled down and was trading sideways-to-down on decreasing volume. An oversold snapback rally seemed likely so I got long. Given the sharp selloff below 51.92-51.95 KEY SUPPORT, I didn't expect much and sold at 51.45 horizontal reistance (the horizontal red line).



By late session, The Bulls were making an effort to get back to the broken 51.92-51.95 KEY SUPPORT. The effort ended in a Triple Top, at 51.75, then FCX sank to the prior low of 51.18, which set up a Rectangle (pattern in yellow).

The next rally failed, and FCX came back and held support at the bottom of the Rectangle (yellow up arrow). That support didn't hold for long, though. The Bears broke the pattern to the downside and twice successfully defended The Bulls' retests of broken Rectangle support (the two down yellow arrows), so that trendline currently is twice validated resistance. Roughly 50.65 is IN PLAY, as long as FCX trades below that broken trendline.



An example of what The Bulls "could do" to begin to turn things around would be to morph the broken Rectangle in the last chart into this Falling Channel, then break out of it to the upside.

Given the technical damage done the daily chart, and given the broken Rectangle in the intraday chart, the bottom of which is twice validated resistance, The Bulls have their work cut out for them at today's opening kickoff.




Gain on the FCX trade: $1,300
Gain on the 25 FCX trades since March 23: $19,700