The Power of the Pattern has shared several times on this blog, that a bullish pattern had formed in Ole Doc Copper. With the bullish pattern in play, we shared with our members and on the blog that Freeport McMoran looked to be a good asset to own a couple of months ago. FCX had formed one of our favorite bullish patterns (bullish falling wedge), where two-thirds of the time and upside rally takes place.
This pattern also allows one to set tight stops in case of a breakdown.We wanted to update viewership of the blog and the action that was taken on FCX, as the position was closed this week-
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FCX was purchased as it looked to be at the apex of a bullish falling wedge back on 5/19 and was attempting an upside breakout. Stops were set tight below the bottom of the bullish falling wedge, at the time the position was taken.
As FCX took off, we started sharing with our Premium & Metals members that it was “Pocket Change” time, where profits were taken on part of the position. Of late with gains on remaining shares up almost 30%, stops were pulled on the position. This week the stops were hit and the last 40% of the shares owned were sold.
We are now using the capital and gains to find another hard hit asset that looks to be forming a bullish pattern.
FYI- Taking gains on FCX does not mean we are now bearish on the stock. Picking up 25% in 100-days is enough for now, as momentum is lofty in Copper and FCX.
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