FCX Breaks the Wedge

This morning  updated FCX 


I showed you a wedging price formation that had broken out of what I suspect s a large triangle top. This afternoon, FCX broke below the wedge, which may be the first stage in calling out the false breakout of the major top.

 Here's the daily hart with the large triangle top and a recent breakout from that top, which I'm fairly certan is a head fake.

Here's the intraday chart of the breakout which has been wedging, which in this case is bearish. As you can see, FCX has broken below this wedge, however bearish this may be, remember, Wall Street still plays the game. Most retail technical traders would have recognized the bearish wedge and gone short the pattern as it nears its apex. The breakdown today would have validated their trade, which means you have to be on watch for Wall Street to try to knock these traders out of their position. The easiest and most common way would be for an upside breakout above the wedge, this will stop out the retail shorts, then send FCX back down (a Crazy Ivan shakeout). The bearish implications are real and retail traders are right about the strategic view of this pattern, it's just Wall Street's short term tactics that cause volatility. Or said more succinctly, the bearish pattern is real, we just have to be on guard as Wall Street may game it in the short term.