FCX: The Double Bottom

From yesterday morning:

"When FCX took out the 54.41 and 54.42 highs of the Ascending Triangle, it was a QUADRUPLE breakout on the session, with 55.37 IN PLAY from the Double Bottom breakout."

On Tuesday's pullback from the gap-filling high, the top of the Ascending Triangle/Rectangle "should have been" support. It wasn't. FCX fell through it, then failed an attempt to get back above it (the down arrow), so it became resistance again. That resulted in a selloff to the bottom of the pattern, a slight downside violation of the lows and a close just about smack on the lower trendline (the first up arrow).

That "looked like" FCX might be headed lower yesterday morning, but it was a Bear Trap close on Tuesday. THE TELL that it was a Bear Trap was:

(1) The opening Gap Up, back above the top of the pattern
(2) The pullback to the top of the pattern (second yellow up arrow) which held, indication that it now was support as it "should have been" on Tuesday.
(3) The upside takeout of the early morning high.

The Bear Trap was sprung and the short squeeze was on. In addition to The Bears having to "Buy To Cover," as the stock began to move up toward the early morning high, The Bulls could see that they weren't going to get a fill of the morning gap, so they stepped in to buy, as well. The proverbial "everyone" was a buyer coming off that successful validation of support at the second yellow arrow, as the stock raced higher.

The Double Bottom target of 55.37 got MADE, with some extra on the upside, confirming the bullishness of Tuesday's QUADRUPLE breakout.