Friday, October 1, 2010

Freeport McMoRan Jumps Above April Highs

With copper hitting $3.70/lb and easily exceeding the April highs now, its not much of a surprise to see Freeport McMoRan Copper & Gold (FCX) to break above the highs in April. Actually what took so long??? The strong China PMI released last night combined with a decent US ISM has pushed the whole material complex higher today.

Normally you buy stocks on such breakouts but its difficult to chase at these levels. The RSI is over 75 as well tending to show a very overbought situation. Possibly wait for any pullback to the $87.50 level to enter at this point. FCX traded around $120 when copper hit $4/lb in 2008 so the stock clearly can run much higher.
























Disclosure: Long FCX

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