Will FREEPORT-MCMORAN INC breakout?

A possible breakout setup was detected on FREEPORT-MCMORAN INC (NYSE:FCX) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:FCX.

What is the technical picture of NYSE:FCX telling us.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, FCX scores 8 out of 10 in our technical rating. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, FCX is only an average performer.

• The long and short term trends are both positive. This is looking good!
• FCX is part of the Metals & Mining industry. There are 983 other stocks in this industry. FCX outperforms 87% of them.
• FCX is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so FCX slightly outperforms the market at the moment.
• In the last month FCX has a been trading in the 36.85 - 46.38 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that FCX is one of the better performing stocks in the market, outperforming 94% of all stocks. However, this overall good ranking is mostly due to the recent strong move.

How does the Setup look for NYSE:FCX

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:FCX this score is currently 8:

Besides having an excellent technical rating, FCX also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 44.96. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 44.94, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for FCX in the last couple of days, which is a good sign.

How to trade NYSE:FCX?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Of course, there are many ways to trade or not trade NYSE:FCX and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.