Big Ben is considering buying FCX as a gold play:
I was looking at FCX for a long term play on the gold bull market. Double top? Looks oversold looking w/the Full S. But the down volume is above average. Cramer just mentioned it on Friday so that doesn't help me out. Please let me know what you think.
I agree with everything Ben said about the technicals. It certainly made a double-top and has already dropped a good portion of the potential from that pattern. A simple measured move tells me that FCX has downside potential to 50. (11 points from the first peak to the mid-point low at $61 so it has potential for another 11 points down from $61.) Additionally it has potential support from that February/March congestion as well as the 200-day moving average.
Despite the short term ugliness I think the chart still looks good for a longer term play. The stock is still above its upward sloping 200-day moving average which should provide support.
