NYSE:FCX may be ready to breakout.

FREEPORT-MCMORAN INC (NYSE:FCX) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:FCX.

Technical analysis of NYSE:FCX

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.

Overall FCX gets a technical rating of 8 out of 10. Although FCX is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• FCX is part of the Metals & Mining industry. There are 986 other stocks in this industry. FCX outperforms 84% of them.
• In the last month FCX has a been trading in the 33.66 - 40.60 range, which is quite wide. It is currently trading near the high of this range.
• Looking at the yearly performance, FCX did better than 90% of all other stocks. However, this relatively good performance is mostly due to a recent big move.
• FCX is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.

How does the Setup look for NYSE:FCX

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:FCX currently has a 8 as setup rating:

Besides having an excellent technical rating, FCX also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. 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 40.02. Right above this resistance zone may be a good entry point. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NYSE:FCX be traded?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

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