Closed the final half of my FCX short

Closed the final half of my FCX trade today as the stock demonstrated its bullishness by fighting off the 20 day MA and the April 13th, 2009 support line around $45.74.  Will look to go long on the pullback soon. 

Covered half of my Freeport short today ($FCX)

Covered half of my Freeport short today after it managed to close above the $45.74 support level.  MACD is also getting close to zero and it seems like the sell off in copper prices may have been overdone. 

Will see how strong tomorrow’s recovery will be if there’s any.  If the support level breaks, target will be affirmed at $43.00 and may consider to go long from there.

Update on my ($FCX) short

My patience in my FCX finally paid off.  Thanks to a combination of trend lines, RSI, MACD and candlestick patterns it has helped develop my confidence in making a more disciplined and less emotional trade.

Lesson that I learnt most from this trade is to wait for confirmation next time rather than anticipating a movement too early by simply judging it from a single day’s move.

Update on my Freeport short ($FCX)

I am still affirming my short again even though it closed above the upper channel “again”. Somewhat disappointed that it bounced back but this formation does look like a bearish harami in the end.

Still affirming my short, but if it closes above the upper yellow channel line on Monday I may need to cover.

Freeport McMoran Short (FCX)

My Freeport McMoran short finally came back to me and is gladly in the green.  Phew.. that was a crazy head fake.  So I hope for now that FCX will close below the top channel line and so will consider adding more short positions by the close with a cover target at $45.74. 

My Freeport McMoran (FCX) short

So far my short for FCX did not work as expected.  Rather than bouncing off the top channel it pierced through.  None the less, I am still keeping my short position in FCX and will reassess my decision at the close.  This jump in FCX was largely contributed by the better than expected ADP number sparking a 4.5% jump in copper prices and a 0.7% jump in gold prices as of now.  MACD is also showing a peak at 0.92 so even though my short did not work as expected I am still expecting a pull back to at least my break even level.  Will see how the close goes. 

Placed a short position on Freeport McMoran (FCX)

Placed a short position at $50.30. FCX is getting way ahead of itself here but it has touched the upper trend line on the current channel.  Looking for a short to touch the lower trend line.  But will reassess my position once it touches the support level of $46.56.

 

Fundamentally, copper prices had turned bearish and gold prices are trading within a range between $85 and $89.50 in the GLD ETF.  While FCX has gone up by another 30% in this past 5 days.  This stock can’t sustain the gains.