Freeport-McMoRan Gains 3.20% as Technical Analysis Validates 10.55% Three-Day Rally on Bullish Momentum and Golden Cross

Freeport-McMoRan (FCX) has experienced a notable 3.20% gain in the most recent session, extending its upward momentum with a 10.55% rally over three consecutive trading days. This recent price action warrants a technical analysis across multiple frameworks to assess the sustainability and potential trajectory of the move.

Candlestick Theory

The recent three-day rally forms a bullish continuation pattern, characterized by higher highs and higher lows, suggesting strong buying pressure. Key support levels can be identified at prior price consolidation zones, such as the 50.79–51.41 range observed in late December 2025, while resistance is currently forming near the 56.15 level (recent peak). A breakout above this resistance would confirm a potential trend reversal from a prior downtrend. Additionally, the absence of bearish reversal patterns like "shooting stars" or "evening doji" supports the continuation of the upward bias, though a pullback to the 51.93–54.41 consolidation band could test near-term conviction.

Moving Average Theory

The 50-day moving average (calculated from the 1-year dataset) is positioned above the 200-day average, indicating a bullish "golden cross" scenario. The current price of 56.15 sits well above both the 50-day (~53.00) and 200-day (~48.00) averages, reinforcing a short-to-midterm uptrend. However, the 100-day average (~52.50) acts as a dynamic support zone. A sustained close below this level would signal a potential retest of the 50.79–51.41 range, while holding above it would validate the continuation of the trend.

MACD & KDJ Indicators

The MACD histogram has shown positive divergence in recent sessions, with the MACD line crossing above the signal line, suggesting accelerating bullish momentum. The KDJ stochastic oscillator, currently in overbought territory (K=82, D=78), indicates short-term exhaustion, but the alignment with the MACD suggests the trend may persist. A bearish crossover in the KDJ oscillator could signal a near-term correction, though confluence with RSI divergence would strengthen this signal.

Bollinger Bands

The recent price action has pushed FCX near the upper Bollinger Band, indicating heightened volatility and potential overbought conditions. The 20-period band width has expanded from a prior contraction phase in early January 2026, suggesting a breakout is underway. However, a retest of the lower band (~49.00–50.00) could occur if the 56.15 resistance fails to hold, creating a mean-reversion opportunity.

Volume-Price Relationship

Trading volume has surged in tandem with the recent price rally, with the most recent session recording a volume of 35.25 million shares—a 30% increase from the prior session. This validates the strength of the bullish move. However, if volume begins to taper while the price continues to rise, it may indicate waning momentum, suggesting a potential exhaustion phase.

Relative Strength Index (RSI)

The 14-day RSI stands at ~72, entering overbought territory, which historically may indicate a pullback. However, in the context of a strong uptrend and aligning with MACD momentum, this overbought condition may not necessarily trigger a reversal. A sustained close below the 60 threshold would signal a shift in sentiment, while a break above 75 could extend the rally.

Fibonacci Retracement

Applying Fibonacci levels from the December 2025 low (~48.00) to the January 2026 high (~56.15), key retracement levels include 52.25 (38.2%), 53.25 (50%), and 54.15 (61.8%). The current price is testing the 56.15 level, which corresponds to the 100% extension. A successful breakout would target the 57.50–58.50 zone, while a failure to hold above the 61.8% retracement level (~54.15) could trigger a retest of the 50% level.

Confluence and Divergence
The alignment of the MACD, KDJ, and RSI in overbought territory with rising volume and bullish moving average crossovers creates a high-probability scenario for continued upward momentum. However, the overbought RSI and KDJ readings introduce a cautionary note, as prolonged overbought conditions often precede corrections. A key divergence to monitor is if the RSI forms lower highs while the price makes higher highs, which would suggest weakening conviction.

Conclusion

FCX’s technical profile suggests a strong bullish bias in the short to midterm, supported by confluence across multiple indicators. However, traders should remain vigilant for signs of exhaustion at the 56.15 resistance level and potential mean-reversion opportunities if the price consolidates within the 51.93–54.41 range. The interplay between volume, momentum oscillators, and Fibonacci levels will be critical in determining the next directional move.