The first week of 2011 saw profit-taking in FCX, resulting in a Dark Cloud Cover candle pattern, looking for confirmation in the week ahead.
Should weakness persist through the month of January we would also be looking at a Dark Cloud Cover candle pattern on the monthly chart, corresponding with a double top (horizontal line indicates the 50% mark where I would suspect some support).
Price has been initially supported at the 20-period MA on the Daily chart, which also happens to be showing a small bear flag, but the 50-period MA could be solid support which would equate to a 61.8% retracement of the December monthly candle and a solid price support level
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 firstname.lastname@example.org
I am always open to questions, comments, or suggestions on how to improve this blog.