I try and avoid wave counting with single stocks as they can move on their own, against the main trend. Of course, when an asset goes up we hope it will fly to the moon and make us rich! We are looking at over 18 years of chart history where there seems to be a 7-year cycle of crashes or bearish bottoms.
A reader mentioned this stock to me so I have to warn readers that this FCX stock is just a first look using EWP but there are other patterns that are just as important to see. Most commodities have diagonal wave structures and this FCX is no exception.
Besides the huge H&S top, we also have a big H&S pattern for the bottom at about the $3.50 price level. The 2008-2009 crash matches the end of solar cycle 23, while the 2011 FCX peak matches the solar cycle 24 peak. The solar cycles have a huge impact on this stock, but it also alternates between attracting and repelling prices.
I didn’t have the room to fill in the 2011 peak but this sure matches many of the other Cycle degree wave 3 peaks I do have.
After the 2016 bottom, I have no wave positions labeled as we are also in a wedge that can send this stock into a nosedive just as quickly as it can break out and soar.
We do have a $10 price support level that developed in the last few years, so there may be bullish hope yet.
I have no Gold/FCX ratio database set up but readers that do follow this stock should create and maintain a Gold/FCX ratio. I do have a few rough calculations but need to do more detailed calculations. At the 2011 peak, the ratio was about 31:1 after which FCX crashed into the early 2016 bottom where we had a 300:1 ratio. Today the ratio is at 102:1, so FCX can still rally.
Since I mentioned the solar cycles I added the numbers in black for quick reverence. At this time, solar cycle 24 has not completed, which may still take all of 2020 to complete. Solar cycle 19 was the tallest for the beginning of the Space Age with solar cycle 24 being the smallest.
Many readers think following the sun cycles has no importance, but they have a very good track record driving and repelling prices.
If you’re trying to fight climate change then you are looking at the chart of the biggest culprit… our sun!
This is a very good graph of what solar cycle 25 may look like as it could also be very short.