Fcx

B

ByLoSellHi

I know. It's a Cramer pick.

Being that as it may, does anyone believe the China story that is propelling this and other copper/zinc stocks higher again, after the London metals meltdown last summer?

I mean, housing in the U.S., which accounts for much of the copper demand, is terrible.

Thoughts? Catch a ride on hyped story? Too late? Or is there fundamental, true and deep demand for copper and zinc that will grow, independently of the U.S. demand cycle?
 
I think its too late and here is why. I know nothing about this company or the fundamentals of copper mining mind you, Im just looking at the chart.

On November 1st, there began the typical ABC correction. Then this was completed at the start of the year and then began a 12345 leg-up. This rally is now done.

We are now in the first leg of another ABC downtrend. I would say to get in around 57.52 for a quick trade. That is probably the point where it will start the B uptrend. Then get out soon after and wait for C. On the C downtrend then go short.

C should be 1.618 times the length of A.
 
I will be honest. I just started reading about the Elliott wave theory a few weeks back and trying to place it into practice. So far, it has done well for me and makes perfect sense. In uptrends there is usually 5 phases and in downtrends 3.

Lets see if it works.
 
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