$FCX - Inflation hedge + Infrastructure play w/ technicalsLots of investors typically look to precious metals such as Gold, Silver, Platinum or Nickel when hedging their portfolios to protect against inflation (unless you're Peter Schiff, then you're all in.) Some analysts believe Copper has more upside than its counterparts.
Outside of just existing, it does have many uses and is commonly used in construction. From houses to communication wires to electronics. Copper is everywhere. It's not too farfetched that with the infrastructure bill going through, that demand for this precious metal will increase. As it stands now we're already in a Copper shortage, the last few years has proven that the current supply can not keep up with demand.
From a technical perspective, FCX on the Daily time frame is nearing the breakout point of an inverse head and shoulders.
HG1!, Copper Futures, is in a bullish pennant. It formed a pinbar off of the golden pocket and held the support of the pennant.
Both of these, technically speaking, are set up to breakout. CPI numbers came in as expected today but often times charts and real life events line up so we will see how the next report does.
Currently in $FCX calls for January.
Warwick
OptionsSwing Analyst
