Freeport McMoRan (FCX) is the largest pure play copper miner. No surprise the stock price has performed exceptionally well last year, as copper moved from below $2.0 to $2.7. InvestingHaven’s research team indicated in February last year how Copper: The Next Metal Set To Rise After Gold and followed up later in the year with Copper Blasts Through Resistance, This Is A Breakout With Much Bullish Energy.
So far, copper (COPPER) is leading copper miners higher. Now the copper market has arrived at another critical level. Both copper is trading at its breakout level, and so does Freeport McMoRan stock price. That is certainly not a coincident.
As shown on Freeport McMoRan’s chart (below) current resistance at $16 is former support (early 2015). The dotted line makes that point.
What InvestingHaven’s research team derives from this chart, the dotted line(s) in particular, and the correlation with the copper price, is that this is an extremely important price level for FCX. If this price appears to be too much of a resistance, FCX could move strongly lower, certainly if copper moves back in its falling channel. However, if $16 holds for at least 2 consecutive weeks, FCX would be preparing a move towards $24, which makes for a 50% upside potential in Freeport McMoRan’s stock price.