Notwithstanding Leon Cooperman's interest in Freeport-McMoRan Copper & Gold Inc. (FCX), the big picture chart structure of the stock going back to 2009 resembles one major rolling-top formation, with numerous failed rallies that have put increasing pressure on the 30.00-28.35 multi-year support plateau.
That said, since FCX plunged in early December after announcing its buying spree to diversify into the oil biz, the stock has been grinding higher, from 30.54 to 36.03 to be precise, or 18% so far.
Let's notice the price structure appears to be destined to test its declining 200-day EMA, now at 36.89.
If satisfied it will also fill most of the gap area left behind on Dec 5, and, as such, should prove to be an area of intense, and perhaps impenetrable, resistance that will stop the current recovery rally in its tracks and reverse FCX to the downside with power.
If ever FCX presses beneath 30.50, the big picture will be warning us that something very damaging either to the company, the industry, or the commodity biz is approaching quickly.
For the time being, however, FCX continues to claw its way higher.