Freeport McMoRan Plunges 22% In Two Days As Bearish Signals Intensify

Freeport-McMoRan (FCX) experienced significant bearish momentum in the latest session, declining 6.19% to close at $35.34. This marks two consecutive down days, with a cumulative loss of 22.09% over this period, reflecting intensified selling pressure. The price action saw an intraday range between $35.15 and $37.53, with volume reaching 86.67 million shares.
Candlestick Theory
Recent candlestick patterns reveal a pronounced bearish structure. The last two sessions formed large-bodied red candles, confirming strong downside momentum after a previous doji indecision pattern. Key support now rests at $35.15 (September 25 low), which aligns with the April 2025 swing low zone of $28.48–$31.35. Resistance emerges near $37.53–$37.67, corresponding to the September 24–25 highs and the psychological $38 level. A breakdown below $35.15 may accelerate selling, while recovery above $37.67 could signal temporary stabilization.
Moving Average Theory
The moving average configuration underscores entrenched bearish trends. The 50-day, 100-day, and 200-day moving averages exhibit a full bearish alignment (shortest > longest), with the current price trading well below all three. This "death cross" structure—where the 50-day crossed below the 200-day in late August—confirms persistent downward momentum. The widening gap between the 50-day MA (∼$43) and the price suggests no immediate trend reversal, reinforcing bearish control across short-, medium-, and long-term timeframes.
MACD & KDJ Indicators
MACD shows strong bearish momentum, with the histogram expanding negatively and the signal line diverging further below the zero line. KDJ indicators align with extreme oversold conditions—%K and %D are sub-20—but have yet to trigger a crossover signal. While these readings suggest potential exhaustion in selling pressure, both oscillators lack bullish divergences against price. Momentum indicators agree on continued bearish dominance, though oversold extremes may foster tactical rebounds if volume participation diminishes.
Bollinger Bands
Bollinger Band dynamics highlight elevated volatility and bearish extremes. The sharp price decline triggered band expansion after a prior contraction phase in mid-September. The price currently trades below the lower band ($36.20–$37.00, approximated 2σ deviation), signaling an oversold extremity. However, the absence of a bullish reversal candle and volatility expansion suggest the breakdown may extend before mean-reversion occurs. Traders should monitor for a close back inside the bands to signal reduced bearish intensity.
Volume-Price Relationship
Volume patterns validate bearish conviction. The two-day decline occurred on substantially elevated volume (91.3M and 86.7M shares vs. 30-day avg. ~20M), confirming institutional participation in the sell-off. Prior sideways action saw diminished volume, indicating weak accumulation before the breakdown. The volume surge during the decline implies sustainable downside momentum, though climactic readings in the last 48 hours may precede short-term exhaustion if volume normalizes without new lows.
Relative Strength Index (RSI)
The 14-day RSI registers 18.7, deeply oversold and near yearly extremes. This reading historically precedes technical rebounds but carries reduced reliability during strong trend impulses. The indicator’s inability to form bullish divergences despite the sharp drop warrants caution—oversold conditions may persist if macro or sector headwinds dominate. The current RSI suggests elevated rebound probability but does not constitute a standalone reversal signal without corroboration from price or volume.
Fibonacci Retracement
Applying Fibonacci to the dominant downtrend from the $49.12 peak (July 8, 2025) to the $35.15 low (September 25) identifies critical retracement barriers. Key levels include the 23.6% ($38.45), 38.2% ($40.49), and 61.8% ($43.78) retracements. These align with prior support-turned-resistance near $37.67 and the psychological $40–$42 zone (June-July 2025 consolidation). Any recovery will likely face significant supply at $38.45–$40.49, requiring volume-backed momentum to overcome.
Confluence exists in oversold signals across Bollinger Bands, RSI, and KDJ, though their warning nature remains secondary to the dominant trend structure. No material divergences appear among indicators—bearish unanimity persists. Probabilistically, the setup favors continuation of the downtrend with technical rebounds likely to face resistance near $38.45–$40. Momentum traders should prioritize downside targets unless volume-driven recovery above Fibonacci resistance materializes.