Good symmetric triangle patterns are rare, but the oddly named corporation Freeport McMoRan (yes, that’s how it’s supposed to be typed) symbol FCX had a beauty. Take note of how the resistance trendline (red) and supporting trendline (green) converged almost exactly at the same place as the dashed line, which represents the peak of its recent bounce. That’s the day I bought puts.
I’ve moved the dashed line down to be anchored instead to the gap that took place between Monday and Tuesday. That is my stop-loss level. I am long May 17th $42 puts on FCX.
We’ll let Stork have the last word on this idea.
