Bull & Bear: Freeport-McMoRan Copper & Gold (FCX)

Shares of Freeport-McMoRan Copper & Gold Inc. FCX are on the rise today, currently higher by 1.31%, trading at $55.01. The stock has seen a bump higher over the past month, supported by an upgrade to Overweight over at Morgan Stanley on the 28th. This begs the questions, “Where are shares headed?” Bulls: Bulls will note that the stock recently broke through a missive down-trending channel when it regained the 20-day moving average, tested the 50-day, and rallied above it in late March. Bulls will also note that Freeport-McMoRan also held the $48.00 level, which is a key support/resistance level. As long as copper remains steady or uptrending, Bulls see no reason why shares cannot consolidate at these levels and form another leg higher, ultimately testing the recent highs near $61.25. A bullish trader could consider buying the May $55 call for $3.05 and selling the May $60/45 strangle for a net credit of $1.67. Bears: Bears will note that, with the shares recent dive lower, a longer-term topping pattern is in the making. This would be confirmed if shares failed to regain the $57.00 level (And ultimately the $61.25 level) very soon. While $48.00 and $44.00 and the first support points, shares could test $35.00-36.00 if copper prices take a turn for the worst. A bearish trader could consider buying the $55/45/35 put tree for a net debit of $3.12. Freeport-McMoRan Copper & Gold Inc., through its wholly owned subsidiary, Phelps Dodge Corporation is a copper, gold and molybdenum mining company. Its portfolio of assets includes the Grasberg minerals district in Indonesia, which contains the single recoverable copper reserve and the single gold reserve; mining operations in North and South America, and the Tenke Fungurume minerals district in the Democratic Republic of Congo.