MakeMoneyCoESTB2020

FCX Buying Opportunity coming up

Long
NYSE:FCX   FREEPORT-MCMORAN INC
Reasons for likely short pull back:
FCX is encountering a historical/psychological resistance @ ~$40.
FCX is at the top of its current Pitchfork price channel .
FCX is overbought (above 75 on RSI ).

Reasons for likely recovery:
Fundamental Analysis - there is a shortage of copper for surge in post COVID extreme lockdown manufacturing.
- copper is an essential element in the production of most electronics, especially EV /alternative energy - also crucial in normal combustion vehicles

Sentimental Analysis - FCX just avoided being purchased by a faltering company Barrick Gold , investors responded well to that
- industry news points to continued increases in demand for copper in EV /alt energy
- FCX just posted a surprise positive 24% in earnings with no signs of diminished performance moving forward

Technical Analysis - FCX has established a strong price channel since its low point during the initial COVID sell off
- FCX has been over 70 on the daily RSI 7 times since the COVID sell off and has risen in value over 600%

PLAN
Entry Price: $32
TGT Sale Price: 1st - $44, 2nd - $49, Final- $55
Stop Loss: $24 or breaks the price channel
Max Position Size: 5% of portfolio

Note - recent administration tax executive order may cause more severe market correction. Watch for signs of more dramatic pull back before entering long.

Comments

Excellent presentation and strategy going forward. Thank you.
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MakeMoneyCoESTB2020 American_Streamer
@American_Streamer, yah it helps me to lay out my own trades like this, so I though I would just share it with the community.
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Thankyou
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