FCX is testing '09 highs again (3rd week of the last 5). The weekly chart shows some interesting things; for one, the Cup w. handle that formed going back to October '08 and breaking out in July of this year. Also, price now sits at a confluence of resistance in the form of an overhead gap and a 61.8% Fibonnaci retracement level (drawn from '08 highs to '09 lows). The measured move coming out of the cup & handle would put price right up against the 78.6% retracement.While on the daily chart, price formed another Cup w. handle pattern recently, with a measured move very close to the one projected on the weekly.
This morning price gaped above a previous resistance level; an important step in making an attempt at the long-term gap fill.
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at email@example.com
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