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Freeport-McMoran weekly chart.
Copper and gold miner Freeport-McMoran (NYSE 🙂 is in the middle of everything metals – and economics.
As the economy heats up, tend to follow. And if interest rates and / or inflation rise, tends to follow.
Over the past 18 months, Freeport McMoRan stock has risen sharply, as evidenced by this chart of Marketsmith.com. This happened as the economy recovered and a slight rise in inflation followed. But the stock price began to retreat and lose momentum. Will this be the sign of a global slowdown?
Looking at the FCX weekly chart, we can see that the downturn in the stock has formed an ominous bearish head-and-shoulder pattern at (1). And price is now trying to cross the neck line of this setup at (2).
Another weakness would be bearish for FCX bulls and possibly for the economy and the market at large. Will the bulls step up and save FCX? Or, will bears feast on this developing weakness?
One thing’s for sure, it’s not a head and shoulder top, until FCX can close securely below the neckline – on a weekly basis.
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