FCX, GDX updates

FCX: Another great example of where we anticipated a final 5th wave up, but don’t get it and why we therefore always have stops in place because one cannot be 100% certain ever of a 5th wave or what ever wave or pattern may unfold. All we can do is anticipate, and have a trading plan that minimizes losses. I personally was long FCX from $18, I took partial profits (sold 50% of my position) on the day before earnings and was stopped out  on the rest on a break below its 50d SMA. I still made almost 2.5% on the trade and avoided the whole disaster. Thus what has this ticker morved into? A large a,b,c up because price has overlapped with what was originally labeled as wave-1. Yesterday’s candle is as ugly as it gets and price is now below its 200d SMA.

fcx daily

The weekly chart shows the bull flag pattern which has been entirely invalidated on the break below it. Also here: patterns are patterns until they are not anymore. There are NO guarantees in the market. Never, ever. So please use always stops. I expect wave-c to eventually reach the $14.75-$13.75 target zone. The weekly technical indicators look weak and bleak now and want to see lower prices. This is an example how one day can turn a whole chart upside down: from bullish to bearish.

fcx weekly

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GDX: Is still in its short-term uptrend channel, but fell once again below its 200d SMA. It needs to move back above the latter to allow for more upside. Clearly price has gone nowhere over the  past year+, so this is longer-term an indecisive chart with no direction. Break above 25.25 targets the mid-30s. Break below 20.75 targets the mid-teens. Those are the real defining parameters for the bigger trends. For now, a move and close back above the 200d SMA is needed and is also my personal buy signal. Note the MACD must start to break above the red downtrend line to make higher highs instead of lower highs. If it can do that over the next few days, things will start to look much rosier as well for the gold miners. If not, lower prices can be expected.

GDX daily