Freeport-McMoRan Could Hit New Highs

Freeport-McMoRan Could Hit New Highs

Freeport-McMoRan Inc. (FCX) hit a 6-month low and turned higher in September after the Copper futures contract carved a potential double bottom at the 50-week moving average.  Two upgrades have followed that turnaround, raising odds the copper-levered blue chip miner has finally ended a healthy correction and will now test May’s 9-year high in the mid-40s. However, patience is advised because accumulation is slumping near a 52-week low, highlighting persistent skepticism.

Many commodities are pushing against multiyear highs in reaction to growing inflation fears and/or supply constraints. Long- and short-dated Treasuries got a summer reprieve after yields at both ends hit the highest highs in more than a year but those bounces have now failed, giving way to downticks that could lift interest rates into territory not seen since 2018. In turn, copper could break out above May’s all-time high at 4.888, allowing Freeport-McMoRan to test 2011 price levels.