This stock is up 200%, but chart points to more gains

Commodities are on a tear this year, and one technician thinks there's more room to run for one mining giant.

Freeport-McMoran has rallied nearly 22 percent this year as gold, silver and copper have climbed a respective 6, 12 and 11 percent.

Copper in particular has seen a recent price surge — the commodity hit a 20-month high Monday as two major mine closures amped up supply concerns.

Carter Worth, technical analyst at Cornerstone Macro, compared trends in Freeport-McMoran's chart to the CRB raw industrial commodities index, which tracks the global commodity market.

Looking at the CRB index chart, he noted that there was a "plunge and then this epic recovery ... now we've got the same thing here with Freeport."

"We've broken above the downtrend ... and then we've reasserted ourselves again," Worth said Friday on CNBC's "Options Action." Freeport has rallied nearly 200 percent in the past 12 months.

According to Worth, while the two charts look similar, Freeport has yet to reach the same recovery point as the raw commodities. However, "I think we're going to throw back which would get us more in line with where the commodities already are."

Freeport-McMoran shares were up nearly 1.4 percent to $16.02 in midafternoon trading Monday.


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  • Melissa Lee

    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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