We reviewed the charts of Freeport-McMoRan (FCX) on Nov. 8 and wrote that "The charts of FCX remain positive and traders should continue to go long at current levels and on strength above $39.78. $43 and then $56 remain our targets."
Prices are getting close to making a new high for the move up so let's check on the indicators again.
In the daily bar chart of FCX, below, we can see that the shares looked like they formed a cup-and-handle pattern but the handle was particularly deep and may have knocked out some longs with close stops. FCX is back above the rising 50-day moving average line and the rising 200-day moving average line. The trading looks like it has been stronger in January.
The On-Balance-Volume (OBV) line is showing the start of improvement from late January. The Moving Average Convergence Divergence (MACD) oscillator is turning up for a cross above the zero line and new buy signal.
In this weekly Japanese candlestick chart of FCX, below, we can see a constructive setup with prices close to new highs. Prices are trading above the rising 40-week moving average line.
The weekly OBV line is slowly improving from August. The MACD oscillator is bullish.
In this daily Point and Figure chart of FCX, below, we can see a potential price target of $58.
In this weekly Point and Figure chart of FCX, below, we used close-only prices and a five-box reversal filter instead of the "normal '' three-box reversal filter. Here the chart shows us a price target in the $76 area. Are we looking at a secular bull market in commodities? I believe so.
In this weekly bar chart of the "continuous futures contract" of copper, below, we can see a bullish picture with prices close to a major upside breakout.
Bottom-line strategy: Traders who are long FCX should continue to hold those positions. Our new price target is the $58 area, up from $56. Aggressive traders could add to longs on a close above $46.
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