During the Lightning Round segment of Mad Money Thursday night one caller quizzed Jim Cramer about Vale (VALE) . "Mining is having a boom, but I think that Freeport-McMoRan (FCX) is better," replied Cramer. It can take a very long time for new mine production to come onstream so let's check out two long-term charts of FCX.
In the weekly line chart of FCX, below, we went back 10 years. We can see that the shares have made a five-year base pattern and a weekly close above $20 will be a major upside breakout. Prices are trading above the rising 40-week moving average line.
The weekly On-Balance-Volume (OBV) line has already made its upside breakout from a multi-year sideways pattern. The Moving Average Convergence Divergence (MACD) oscillator has also given us a buy signal with its move above the zero line this year.