Freeport-McMoRan (FCX) Surges 3.03% in Six-Day Rally as Technical Indicators Signal Strong Bullish Momentum

Freeport-McMoRan (FCX) has surged 3.03% in the most recent session, extending a six-day rally with a cumulative gain of 6.88%. This sustained momentum suggests strong bullish conviction, particularly as the price has consistently closed above key psychological and technical levels. The recent price action reflects a series of higher highs and higher lows, indicating a well-defined uptrend. Candlestick Theory analysis reveals a potential bullish continuation pattern, with the price consolidating near the upper end of a rising channel. Key support levels are evident around $47.39–$48.11 (previous consolidation zones), while resistance appears at $50.95–$51.64 (recent highs). A break above $50.95 could trigger further upward momentum, but a retest of $47.39 as support would be critical to validate the trend’s integrity.
Moving Average Theory indicates alignment between short- and long-term trends. The 50-day moving average (approximately $45.50–$46.00) is well above the 200-day MA ($40.50–$41.00), confirming a bullish bias. The price has remained above the 200-day MA since mid-December, reinforcing its status as a long-term support line. The 100-day MA ($44.50–$45.00) acts as a dynamic support, with the current price comfortably above it. This suggests that the uptrend remains intact, though a close below the 50-day MA could signal weakening momentum.

MACD & KDJ Indicators highlight potential overbought conditions and divergences. The MACD histogram has shown positive divergence during the recent rally, with the line remaining above the signal line, suggesting sustained momentum. However, the KDJ oscillator (Stochastic) has entered overbought territory (K: 80–85, D: 70–75), raising caution about a near-term pullback. A bearish crossover in the Stochastic could precede a correction, particularly if the MACD begins to flatten. Divergences between the RSI and price action—such as a rising price paired with a declining RSI—would further validate weakening momentum.
Bollinger Bands reflect elevated volatility, with the price currently near the upper band ($50.95). This proximity suggests the stock is trading at extreme levels relative to its recent range, increasing the probability of a retracement toward the 20-day MA ($49.00–$49.50). Band contraction observed in early December preceded the recent breakout, indicating that the current expansion may signal a continuation phase rather than a reversal.
Volume-Price Relationship provides mixed signals. The recent rally has been accompanied by above-average volume, particularly in late December and early January, validating the strength of the uptrend. However, volume has moderated slightly in the past three sessions, which may indicate diminishing buying pressure. A sustained increase in volume during a pullback would be necessary to confirm a resumption of the uptrend.
Relative Strength Index (RSI) currently hovers near 70, reflecting overbought conditions. While this is a warning sign, RSI can remain elevated in strong trends. A close below 60 would suggest a short-term correction, but a sustained move above 70 would indicate continued bullish momentum. Caution is warranted if the RSI forms a bearish divergence (e.g., lower highs in price with lower highs in RSI).
Fibonacci Retracement levels derived from the December low ($37.20) to the January high ($40.54) show key resistance at $41.25 (38.2%) and $42.19 (50%). The current price action above $50.64 suggests the stock is in a secondary rally, with Fibonacci levels from the October–November consolidation phase (e.g., $43.89–$46.11) now acting as dynamic support. A breakdown below $43.89 (61.8% retracement) could invalidate the near-term bullish case.
Confluence points include the alignment of the 50-day MA, Bollinger Bands, and Fibonacci levels near $49.00–$49.50 as a potential consolidation zone. Divergences between the RSI and price action, coupled with weakening volume, could trigger a pullback. However, the strong position above the 200-day MA and bullish MACD suggest the uptrend remains intact for now. Traders should monitor the $47.39 support level and RSI for overbought warnings, while investors may find opportunities in a pullback to the 50-day MA.