Freeport-McMoRan (NYSE:FCX) (earnings) has rocketed out of its April-July rounded base formation, which projects medium-term targets of 14.60/70 (met) and then to 15.70-16.00 thereafter.
The first optimal target zone also coincides with the 62% recovery level of the entire January-July 2017 bear phase.
Usually, on the first attempt to hurdle key resistance — i.e., 14.6070, — the price structure will fail and then pull back into support, ahead of another, more powerful upleg that takes out key resistance (14.60/70) en route to a secondary higher target zone, in this case near 16.00.
If that happens, don't rule out an upside stall at 14.60/70, followed by a give-back that presses FCX into the 14.20/00 support zone, followed by the initiation of a new upleg that will point to 15.60-16.00.
