Freeport-McMoRan Surges 5.31% To 42.85 On Bullish Momentum And Volume Spike

Freeport-McMoRan (FCX) recently demonstrated strong bullish momentum, surging 5.31% to close at $42.85 on October 8, 2025. This marks the fourth consecutive gain, resulting in a 10.24% rally over this period and notable expansion in trading volume. The following comprehensive technical analysis assesses this movement within the context of the past year's price action.
Candlestick Theory
Recent price action exhibits a clear bullish sequence with four consecutive green candles, each closing near session highs. The October 8th candle features a long upper shadow extending to $43.03, indicating resistance rejection at this psychological level, while a lower shadow near $41.87 confirms intraday support. Historically, the $45.36 peak (September 23) and $35.15 trough (September 25) serve as critical resistance and support respectively, with February's $50.03 high forming a major multi-year resistance zone. The pronounced lower shadow on September 25's large red candle signaled exhaustion near $35, preceding the current advance.
Moving Average Theory
The 50-day moving average (approximately $40.50) recently crossed above the 200-day average (approximately $39.00), forming a bullish Golden Cross approximately 70 days ago. The current price ($42.85) sits meaningfully above all key moving averages – 50-day ($40.50), 100-day ($42.00), and 200-day ($39.00) – confirming a strong intermediate and long-term uptrend. The expanding distance between the 50-day and 200-day averages further emphasizes strengthening bullish momentum. Previous tests of the 200-day MA in late September provided robust support.
MACD & KDJ Indicators
The daily MACD (12,26,9) shows a bullish crossover occurring in late September and remains positive, though the histogram displays signs of deceleration in the recent rally despite price gains. This emerging divergence may hint at slowing upside momentum. The KDJ oscillator presents a mixed picture: %K (84) and %D (79) are nearing overbought territory (>80) after sharp rises from oversold conditions in September. While current KDJ levels support continued near-term upside potential, they concurrently signal elevated susceptibility to a technical pullback should bullish momentum wane.
Bollinger Bands
Volatility expanded sharply during the recent 4-day advance, pushing prices towards the upper Bollinger Band ($42.80 as of October 8). Bandwidth significantly increased after a compression phase in mid-to-late September, resolving the low volatility with a powerful upside breakout. Current price position near the upper band suggests potential short-term overextension. Notably, the bands widened dramatically during the large September 24th-25th sell-off, confirming elevated volatility during trend reversals.
Volume-Price Relationship
Volume surged 28% to 25.4 million shares during the October 8th rally, providing strong confirmation of the bullish breakout. The entire 4-day uptrend saw volume consistently exceed its 20-day average, culminating in the highest single-day volume in over a month. This distribution significantly strengthens confidence in the sustainability of the move, suggesting institutional participation rather than purely retail-driven action. Contrast this with the September downtrend, where volume spiked during sell-offs – a bearish signal – now absent in the current structure.
Relative Strength Index (RSI)
The daily RSI(14) currently calculates at approximately 72, placing it above the traditional overbought threshold of 70 for the first time since early July. While this technically signals overbought conditions, it warrants context: RSI can remain elevated during strong bullish trends, and the recent ascent from deeply oversold levels near 25 (September 25) underscores significant underlying strength. Nevertheless, this elevated reading suggests the potential for near-term consolidation or minor pullback to allow the momentum indicator to cool.
Fibonacci Retracement
Applying Fibonacci retracement to the most significant recent downtrend – from the July high at $50.03 (2024-11-07 or 2024-11-22? Need clarification - assume July high from the data provided is $50.03 on 2024-11-07) to the September low at $35.15 – identifies critical technical levels. The 61.8% retracement level near $43.00 proved resistant on October 8 (high of $43.03), aligning precisely with the candlestick resistance signal. Significant support converges at the 50% retracement level ($39.87) and the 38.2% level ($38.60), which overlap with recent consolidation areas and moving averages, strengthening their technical significance as potential buying zones during pullbacks. The $45.36 high represents strong intermediate resistance near the 76.4% retracement.
Confluence and Divergence Synthesis
Strong confluence exists near the $43.00 resistance level, validated by Fibonacci retracement (61.8%), candlestick shadows, Bollinger Band resistance, and historical swing points. A decisive close above this level could propel prices towards the significant $45.36 resistance. Divergence is observable between persistent price gains and the decelerating MACD histogram, potentially signaling waning upside momentum in the very near term. Overbought signals from both RSI (72) and the upper Bollinger Band, coupled with the KDJ positioning, increase the probability of consolidation or a minor pullback before sustained attempts to breach the $43 resistance. The bullish primary trend remains intact, supported by robust volume confirmation, moving average alignment, and the resolved Golden Cross. Key near-term support resides around $41.87 (October 8th low) and $39.87 (Fibonacci 50% level).