Freeport-McMoRan near Resistance

Published on Monday, 30 August 2010 05:20 Written by Christopher Lynn

New York, August 30th (TradersHuddle.com) - Shares of Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) are trading very close to calculated resistance at $74.30 with the current price action closing at just $71.20 placing the stock near levels that make it difficult to buy.

Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) is a copper, gold and molybdenum mining company. The company holds interests in various properties located in North and South America and holds interests in various properties around the world. Freeport McMoRan is the largest publicly traded copper producer in the world.

Freeport-McMoRan's current stock range is defined by current calculated support defined at $65.71 and by the resistance level at $74.30, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Freeport-McMoRan, as the stock is well above support, however, as the stock pulls back towards $65.71 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $74.30 then traders will get an opportunity to enter Freeport-McMoRan stock by establishing a position as the stock moves to a higher range.