Copper, the stuff update and FCX, Freeport

copper s oct 2012copper dec 2012

The then (29th of Oct.) and now charts. This is a bona fide triangle, an E-Waver’s dream as these things are highly predictive and accurate. This triangle is in a B-wave position, not a fourth, therefore the expectation is for a C-leg to start any moment now and travel, perhaps, the same distance as the A-leg. That would bring to about $2.20 a pound and , yes, we are aware that the Chinese will do more to stimulate but for the moment their Shanghai index recorded a 3 year low. Stocks like , Freeport will not fare well under such circumstances.

Here are the Freeport McMoran Copper and Gold then (Jan) and now charts for a comparison;

fcx s jan 2012FCX dec 2012

We recommended a sell at the time (at $45) even if it might go a little higher. At today’s level of , give or take $31 that is a tidy saving. The company decided to go into the oil business presumable to diversify. Presently it may be tracing out a similar triangle to the metal itself, even if it is running behind just a bit. The e–leg is missing but these can be awfully short so it wont take much to get the two realigned. Sell all copper related stocks, except perhaps Ivanhoe, TRQ see next..