Freeport-McMoRan: A Longer-Term Technical Look

Let's check out two long-term charts on the miner.

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.

In this Point and Figure chart of FCX, below, we used weekly close-only price data. Here we can see that a weekly close at $19.50 will be a breakout. A longer-term price target of $39 is being projected. A double is nothing to sneeze at.  

 

 

 

 

Bottom-line strategy: The thing about long-term forecasts is that either traders do not believe them or that they forget about them because their focus and time horizon tends to be much shorter. I am anticipating that 2021 will be a very strong year for metal prices. Let's check on the price of FCX a year from now.

 

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