FCX is a new short position in the Covestor Model Portfolio. I have been eyeing the stock for a while. FCX setup a "Failure Test" pattern, where price fails at major resistance.
Beginning of December, FCX acquired MMR. Investor didn't like the new diversification strategy since Freeport had always been a Copper pure play. The story might still be a burden for the stock going forward. FCX has been underperforming the broader market since the beginning of the year and the Basic Materials sector has recently shown some weakness as well, possibly due to Dollar strength.
With a current price of $35, a stop at $36 and target at $32, the trade offers a nice 1:3 risk reward ration in an overbought equity market.
FCX: a nice entry inta short postion last week.
Basic Materials acting weak recently.