Thursday, December 15, 2011

Freemont -McMoRan still baffles me

COMPLETE ARTICLE AND GRAPHS


When I look at Freeport - McMoRan (FCX) I really get confused.  Here is a company that always has good revenue, earnings and cash flow numbers plus an A+ financial strength rating but has performed like a dog lately.  In the long run I think it might be a good buy but you need to be careful in how you play the stock.


Barchart technical indicators:
  • Barchart uses technical indicators from 7 days to 6 month to determine the current price momentum of a stock
  • Currently a 72% Barchart technical sell signal
  • Trend Spotter hold trending to a sell
  • Below its 20, 50 and 100 day moving averages
  • 5.34% off its 1 month high
  • 34.56% off its 1 year high
  • Relative Strength Index 46.80%
  • Barchart computes a technical support level at 36.14
  • Recently traded at 37.58 with a 50 day moving average of 37.93

Summary: In the long run I agree with the optimism expressed by both the professional and individual investors about Freeport-McMoRan (FCX) , however I think you will be able to pick up some shares a little cheaper down the road.  Right now commodity prices seem to be falling.  I think if you use a 14 day turtle chart like the one provided by Barchart below you might be able to buy on a dip.  If you do not like to watch the technical chart then I'd advise you to dollar cost average into this issue over the next 6 months







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