$FCX trade ideaFreeport Morgan is a company that mines for Copper.- Copper miners are poised to benefit the most from the mismatch between mine supply and demand over the next decade, Jefferies says. The market is valuing these companies based on the assumption that we are now at a cyclical peak, but the bank believes that we are in the early stages of a structural bull market, reflecting a lack of supply growth in the industry and demand growth from renewables and electric vehicles. "This is a multi-year story that will gradually play out. Freeport , First Quantum, Glencore and Antofagasta are all highly leveraged to the price of copper and should benefit," Jefferies says.
Bullish options activity has been detected for the July dates on 55 and 60 strikes which is a very large move to the upside for this company.
The Technical setup is a clean cup and handle on the daily time frame with price currently consolidating above the breakout. Targets are 54, 58, and 60.
OptionsSwing Analyst
Daniel Betancourt
