Please reference my first FCX chart for my initial thoughts.
The current rally is sitting roughly at 78.6% retracement of the prior move from April 16th of 2019. As you can see we paused a little bit and consolidated after the initial move up from $8.30 (which also resulted in a pause/sideways movement). I'm looking for AT LEAST a movement to the 100% retracement at 14.51 which is currently serving as resistance from Aug-Sept double top. This level also lines up with the 2.272, 2.414, and 2.618 fib cluster extension of the prior swing high-low.
I'm looking for a small retracement of the last (second red line) movement. As you can see this movement already flagged a bit and after todays late day pump im expecting a little relief before wednesdays announcement of china trade deal.
Assuming things go okay with the signing and whatnot, I think we will at least see the 1.272 or 1.618 extension by spring/summer.
One thing to keep in mind is that FCX earnings are on Jan 23rd. Im expecting a small beat or miss. I need to refresh my memory but the prior earnings were a miss or barely beat but the FCX continued upwards on china talks and futures pumping. Earnings are turning around and production is ramping up with the opening of new deep mine in Indonesia.
What are your thoughts?
Comment
⋅
Please excuse the crappy chart orientation and make sure to view the fib at the start of 2019. I am still learning how to effectively publish ideas.
By my looking at it, the RSI passed back above the last down days RSI, so for me, its out of its divergence, and back into positive momentum. I would say it will run if the RSI gets back to 70 and remains at the same price level.
The_Real_AMF
⋅
@FireKnight, Fireknight, thank you for taking the time to comment! I have to admit I am fairly new to trading and technical analysis. I will have to do more reading and learning regarding RSI, divergences, and what that means for prices.