The commodities complex is beaten down. Irrational exuberance is one of the words that pops up as we try to describe the scenario that is unfolding. But extreme readings offer opportunities. And we see a huge opportunity in one of the senior mining producers, Freeport-McMoRan, as the stock has probably reached its long term bottom.

The long term chart shows how FCX dipped even 80% below its 90 week moving average, which is very exceptional. The stocks broke down at the $22.50 level, in January of 2015, and dipped below $4 three weeks ago. Now the stock is trading at $5.6. What a discount.

Is Freeport-McMoRan A Buying Opportunity Chart 1

Buying interest in FCX is surging, as seen on the chart with the shorter term timeframe. The daily chart shows how the start of the breakdown created a trendline. Now, more than a year later, the same trendline has been touched, which came with a very sharp bounce.

Is Freeport-McMoRan A Buying Opportunity Chart 2

This has to be long term bottom. FCX has almost doubled over the last 2 weeks, so it is overbought at this point. Watch for a small correction, setting a higher low, for a very interesting entry position.