Freeport-McMoRan Inc., a natural resource company, acquires,
explores, and develops mineral assets, and oil and natural gas
resources. The company explores for copper, gold, molybdenum, cobalt
hydroxide, silver, and other metals, as well as oil and gas. It holds
interests in various mines located in the Grasberg minerals district in
Indonesia; Morenci, Bagdad, Safford, Sierrita, Miami, Chino, Tyrone,
Henderson, and Climax in North America; Cerro Verde and El Abra in South
America; and the Tenke Fungurume minerals district in the Democratic
Republic of Congo, Africa. The company’s oil and gas operations include
oil production facilities in the Deepwater Gulf of Mexico; oil
production facilities onshore and offshore in California; onshore
natural gas resources in the Haynesville shale in Louisiana; natural gas
production from the Madden area in central Wyoming; and a position in
the Inboard Lower Tertiary/Cretaceous natural gas trend onshore located
in South Louisiana.
Take a look at the 1-year chart of Freeport (NYSE: FCX) below with the added notations:
FCX has been trending lower for most of the past year, but over the
most recent 6 months the $8 price level (blue) has become important to
the stock. Not only was the $8 level a support back in August and
November, but that level was also a resistance in February. Now that FCX
has broken back above $8, that level should provide support for the
current pullback.
The Tale of the Tape: FCX has a key level at $8. A
trader could enter a long position on a pullback to $8 with a stop
placed under the level. However, if traders are bearish on the stock, a
short trade could be made instead on a break back below $8.
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