Yes, I know – there are a lot of details in the diagram above, and it may seem unreadable at first, but I assure you that it is worth diving into.
There are a few signs on it that indicate a huge house of cards is about to fall.
JNUG vs FCX short positions
One is that we already saw a debunking of the outbreak to new record highs earlier this year. Right now, FCX is at the 2007 high (yes, 17 years have passed and FCX is at the same nominal price level), and it looks like it’s about to negate the move above those highs again. Just like it happened inside any previous case.
The other is that the overall shape of 2020 performance – now – is very similar to what we saw between 2008 and 2020. 2011. 2011 – the year of THE top in gold, silver and mining shares. FCX itself started to fall from above $40 to below $4. Could it happen again? Naturally.
Finally, in the lower part of the chart above, you can see that world stocks have reversed their move above their 2007 high, which is a very bearish sign for stock markets around the world – and for US stocks too, as the really large movements are usually aligned.
There is a rising medium-term support line that is currently around $42. Once FCX breaks below and confirms this breakdown, the decline will likely accelerate.
From a short-term perspective, we see that there is additional support around $41.