Copper Bull Case Holds Despite Breakout Failure

Financial news and analysis from 24/7 Wall St.

In a recent Mad Money segment, Jim Cramer predicted that copper would reach $100 if Freeport-McMoRan broke out to $75. However, the breakout level failed almost immediately, with FCX closing at $75.74 on August 31 and sliding 4.2% to $72.56 by September 3.

Despite this setback, Kevin Simpson of Capital Wealth Planning added to his position in Freeport-McMoRan during the pullback, citing the company's strong fundamentals and the growing demand for copper.

Simpson's reasoning was based on the fact that copper has applications in electrification, particularly in data centers, which are being built at an increasing rate. He also noted that Freeport's numbers show a clear path to $100 if the company can maintain its realized copper price and the Fed continues to support rate cuts.