Sure, I do know – there are a whole lot of particulars within the diagram above, and it could appear unreadable at first, however I guarantee you that it’s price diving into.
There are a couple of indicators on it that point out an enormous home of playing cards is about to fall.
JNUG vs FCX brief positions
One is that we already noticed a debunking of the outbreak to new file highs earlier this yr. Proper now, FCX is on the 2007 excessive (sure, 17 years have handed and FCX is on the identical nominal value stage), and it appears to be like prefer it’s about to negate the transfer above these highs once more. Identical to it occurred inside any earlier case.
The opposite is that the general form of 2020 efficiency – now – is similar to what we noticed between 2008 and 2020. 2011. 2011 – the yr of THE prime in gold, silver and mining shares. FCX itself began to fall from above $40 to under $4. Might it occur once more? Naturally.
Lastly, within the decrease a part of the chart above, you possibly can see that world shares have reversed their transfer above their 2007 excessive, which is a really bearish signal for inventory markets around the globe – and for US shares too, because the actually massive actions are normally aligned.
There’s a rising medium-term assist line that’s presently round $42. As soon as FCX breaks under and confirms this breakdown, the decline will seemingly speed up.
From a short-term perspective, we see that there’s further assist round $41.