Will FCX Drop To $5?
Abigail Doolittle | May 27, 2012 12:01AM ET
FCX is well below the initial target of $36 suggested back in January and reiterated in March with the second target of $30 provided coming soon.
Responsible for the decline to $36 was that small Descending Triangle that FCX traded in for much of the first quarter of this year while it is that bearish Rising Wedge that should take FCX down to $30 if not its most aggressive target of $28.23.
Should FCX continue on this bearish path, it will be time to pay attention to its multi-year Head and Shoulders pattern that could take FCX back to its single digit days of the from the first bear market of the last decade and this means $5 or so.
This seems a bit extreme even to the copper and gold bear in me, but this is what that patterns suggests as a best case scenario.
Should it prove true that FCX drops to $5, one thing is clear and that is the fact that interesting times, very interesting times ahead.
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