Freeport McMoran has had a huge run up this year, as have many of the miners. Looking at a long term chart I see that FCX could have a long way to go.
I am a fairly short term trader, often holding for only for 2-3 months, but I keep an eye on long term charts because many large funds hold for much longer time frames and invest for those lengths of time.
A cup and handle is a powerful chart pattern simply because it forms a 'triple top' and gives anyone who wants to sell at "the top" plenty of opportunities to do so. When evaluating chart patterns I pay attention to what volume does during a move up, or down. A strong bullish signal is given when there is strong volume on the upswing and declining volume on the downswing or sideways 'consolidation'.
FCX shows all of these and is a good stock to watch for an indication of what may happen in the mining sector as a whole, and the world economy for that matter.
A weak U.S. dollar and the effect of that currency on materials prices is a major factor.
A breakout above recent one year highs could be the start of a major trend change in the miners.
A small position here is warranted, with additions as the stock moves up. IF IT MOVES UP.
IT MAY NOT MOVE UP.
But I think they all will eventually, probably after they fake out all of us chart readers. LOL
Control your risk,