FCX: Double Bottom And Falling Wedge Breakouts

From yesterday:

"This one is too close to call, but technically, the 48.82 close is a violation of the trendline."

I like what The Bulls did with that. On the early selloff to Wednesday's low of 48.52, they held at 48.51 for the right leg of a "W-Bottom," or Double Bottom (synonymous). The key to that pattern is the little pivot in the middle of the "W," which in this case, was 49.23. If/when 49.23 gets taken out to the upside (it obviously did), we can calculate an upside target for the pattern breakout:

49.23 - "W"-pivot
48.52 - (the more conservative of the 48.52 and 48.51 lows)

49.23 - 48.52 = 0.71 points of upside on a breakout above 49.23.

49.23 + 0.71 points = Target: 49.94 IN PLAY, which got MADE, and was exceeded.



The candle in the daily chart was a Bullish Engulfing pattern, off a successful Double Bottom breakout in the intraday chart, so that's another positive.



The early morning 48.51 low also was Data Point #4 of a Falling Wedge (the pattern in black). The top of that pattern, Trendline #1-#3 came in yesterday at 48.8475. The close was smack on it, at 48.85.

Falling Wedge breakouts aren't particularly bullish due to the price congestion immediately preceding the breakout, inside the wedge, but it's certainly "constructively bullish."

Given the sloppiness below the lower trendline #1-#3 of the larger Falling Wedge, The Bulls pulled off a nice session:

1. They completed a Double Bottom and the 49.94 target got MADE.
2. They put in a Bullish Engulfing pattern in the daily chart.
3. The broke out of a Falling Wedge in the daily chart.

The downward slope of trendline #1-#3 of the smaller Falling Wedge (in black) is a sharp -0.4075, so it will come today at 48.44. Any trading in FCX below that is a "knuckle-biter" for The Bulls, calling the breakout of the smaller Falling Wedge into question as a possible "Fakeout Breakout."