Are you keeping a close eye on the stock market? The above chart may seem overwhelming at first glance, but I can assure you that there are some critical indicators to pay attention to. At Extreme Investor Network, we thrive on analyzing these details to provide you with valuable insights and strategies for successful trading.
Let’s dive into the signs suggesting a potential downfall in the market. One significant indicator is the invalidation of the breakout to new all-time highs earlier this year. FCX is currently hovering around its 2007 highs, showing a pattern of repeating this cycle every few years. This trend is eerily similar to the performance we witnessed between 2008 and 2011, leading up to the top in gold, silver, and mining stocks. Could history repeat itself with FCX declining from above $40 to below $4 once again? Absolutely.
Furthermore, the chart indicates that world stocks have invalidated their move above their 2007 high, signaling a bearish outlook for global markets – including the US stock market. When major moves align, it’s crucial to be mindful of the potential ripple effects across various sectors.
Keep an eye on the medium-term support line around $42 for FCX. A break below this level could confirm a breakdown and trigger a significant decline. In the short term, additional support is seen around $41, adding another layer to watch for trading opportunities.
At Extreme Investor Network, we are dedicated to providing you with unique insights and analysis to navigate the complexities of the stock market. Stay tuned for more strategies and tips to help you make informed investment decisions.