DailyPlay – Freeport-McMoRan (FCX) – December 16th, 2021

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The bullish DailyPlay for Thursday, November 16th is Freeport-McMoRan (FCX). FCX is part of the materials sector and has high exposure to copper prices which have pulled back and found support in recent days and bouncing higher. 

Please note that we have moved the strikes $1 higher than what was shown in our platform popup due to FCX’s pre-market move. The new strikes are $38 (short) and $34 (long). Please watch the video below to learn more about the DailyPlays

Technical View

• Despite running into resistance at $39, price has consolidated just below that level and is currently retesting the lower bound of that consolidation range at $37 which provides a better risk/reward bullish entry. 
• Short term momentum indicates price is oversold.
• Strong Technical Score (8 out of 10)

Fundamental View

• Strong growth potential in Arizona and Indonesia sites as copper demand starts to rise. 
• Pullback in Copper prices that are now finding support provides a positive medium-term outlook for FCX.  
• Earnings: Jan 25, 2021 (40 days)

As this is a credit spread, look to take profits at 50% gain and cut losses at 100%:

• Take Profits: $0.88 Debit
• Stop Loss: $3.30 Debit

View FCX Trade