Is the Ride Over for This Gold Stock?

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Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX ) - This copper, gold and molybdenum company has assets in Indonesia and North and South America. It is the second-largest copper producer in the world, as well as a major producer of gold.

With the recent strength in metals, FCX enjoyed a rally from under $60 in June to over $120 last week. But Standard & Poor's just lowered its rating on FCX to a "sell" from "hold" based on this dynamic run-up in price, which took the stock above their target price of $95.

Yesterday, FCX broke through its 50-day moving average on a breakaway gap signaling a major trend change. Even though the company reported record quarterly profits yesterday, it admitted that it is not likely to match that performance in the near future.

The stock should be shorted at current price or on a rally. The technical target for a short sale is $95. Traders may wish to consider the purchase of put options, but check with your broker regarding margin requirements for trades in FCX.

Trade of the Day - FCX Stock Chart

Trade of the Day Chart Key

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: FCX

Sam Collins

Sam Collins

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