2020 to Bring Long-Awaited Relief to Freeport Investors

Freeport stock can climb throughout 2020

It’s been a rough couple of years for U.S.-based copper miner Freeport-McMoran. The stock reached $20.25 a share in the first month of 2018. Now, in the last month of 2019, FCX is hovering around $12.10. Despite the significant recovery from as low as $8.43 in October, the stock is still down 40% since January 2018.

Can the recent two-month rally be trusted or is it just another short-lived recovery within the larger downtrend? With that question in mind, let’s put the daily chart of Freeport stock in an Elliott Wave context.

Freeport Stock Rally look Sustainable This time

The daily chart above reveals the entire wave structure since the bottom at $3.52 in January 2016. It can be seen as a leading diagonal in wave I/A, followed by an (a)-(b)-(c) expanding flat correction in wave II/B. Together, these two parts – motive and corrective – form a complete 5-3 Elliott Wave cycle.

Freeport Stock Looks Promising Heading into 2020

Wave I/A ended at $17.06 in January 2017. Wave II/B occupies the rest of the chart as it took nearly three years to develop. The initial decline to $11.05 in wave (a) was followed by a simple a-b-c zigzag to a new high in wave (b). Wave (c) was a five-wave impulse, labeled 1-2-3-4-5, where wave 5 is an ending diagonal.

If this count is correct, the current recovery must be the beginning of wave III/C, which should be able to reach $21 and beyond. Another reason for optimism is the fact that wave (c) of II/B seems to have terminated shortly after touching the 61.8% Fibonacci level. All told, 2020 is shaping up to be a better year for Freeport-McMoran investors.

Similar Elliott Wave setups occur in the Forex, crypto and commodity markets, as well. Our Elliott Wave Video Course can teach you how to uncover them yourself!

Disclosure: the author holds a long position in FCX stock.

New to Elliott Wave?

Elliott Wave principle offers a completely new understanding of what the nature of the markets is, what drives them and what can be derived from their movement. This course is for those of you, who have been looking for an honest Elliott Wave guide, describing the method’s advantages over other trading tools, but not hiding its weaknesses.

Check Video Course    or     Check our eBook


See our Video Course
or check our eBook

Last year over 60k readers trusted EWM Interactive to help them in their trading decisions.

I’m very happy i discovered your service. Thanks so much and keep up the good work!

- Xavier N.

Just loving your analysis. Thank you so much, really wished you add some more currencies to your list You have a client for life :)

- J. Kotzee

I love the way EWM does business: response times & overall friendly demeanor are fantastic... and the prices are very fair. The trade recommendations read like like they come from a seasoned trader that is used to winning. Couldn't ask for more.

- C. Montgomery

I love the way EWM does business: response times & overall friendly demeanor are fantastic... and the prices are very fair. The trade recommendations read like like they come from a seasoned trader that is used to winning. Couldn't ask for more.

- C. Montgomery

I’m very happy i discovered your service. Thanks so much and keep up the good work!

- C. Montgomery

Just loving your analysis. Thank you so much, really wished you add some more currencies to your list You have a client for life :)

- C. Montgomery