Freeport-McMoRan Gains 5.58% In Two Days As Technicals Signal Bullish Breakout

Freeport-McMoRan (FCX) rose 3.90% in the latest session, marking two consecutive days of gains totaling 5.58%. This upward momentum positions the stock at $45.77, reflecting renewed buying interest as technical indicators signal potential trend development.
Candlestick Theory
Recent price action shows FCX forming a bullish engulfing pattern on July 1-2, 2025, where the second day's body completely overcame the prior day's losses. This reversal signal occurred near the $44.42 support level, which aligns with June's reaction lows. Resistance emerges at $46.69 (July 2 high), closely matching the 200-day moving average. A sustained break above this resistance zone could validate bullish momentum, while failure might retest the $43.35 pivot from June 30.
Moving Average Theory
The 50-day MA ($41.15) recently crossed above the 100-day MA ($40.80), generating a golden crossover. Current price ($45.77) trades above both shorter-term averages but remains below the declining 200-day MA ($46.40). This configuration suggests emerging intermediate bullishness within a longer-term neutral trend. The converging MAs near $41.50 now serve as dynamic support, with a definitive break above the 200-day MA required to signal robust long-term trend reversal.
MACD & KDJ Indicators
MACD shows a bullish crossover with histogram bars expanding positively, indicating accelerating upward momentum. The KDJ oscillator (K:78, D:72) resides near overbought territory but hasn't triggered a bearish signal as both lines maintain upward slopes. Neither indicator currently displays divergence against price, though the elevated KDJ reading warrants monitoring for potential exhaustion. The MACD's position above the signal line reinforces near-term bullish bias despite overbought risks.
Bollinger Bands
Bollinger Bands are expanding after a prolonged contraction period, signaling increasing volatility. Price currently trades near the upper band ($46.40), which coincides precisely with the 200-day MA. The breakout from the previously compressed bands supports continued directional movement. The midline ($42.60) now acts as support, aligning with June's consolidation floor. Band expansion without immediate price rejection suggests room for additional upside before mean-reversion pressures emerge.
Volume-Price Relationship
Recent gains show conviction, with July 2 volume (23.3M shares) exceeding the 20-day average and accompanying a 3.9% advance. This follows above-average volume during the June 26 rally (6.85% on 20.5M shares), establishing $44.50 as a high-volume support node. However, volume diminished during the late-June pullback, suggesting weak commitment to downward moves. Current volume profile validates the bullish breakout but requires sustained participation above 20M shares to extend the trend.
Relative Strength Index
The 14-day RSI (64) resides in neutral territory after rebounding from oversold levels below 30 in early June. While not yet overbought, its rapid ascent from 35 to 64 within two weeks warrants caution about potential short-term consolidation. No bearish divergence is evident, as higher price highs correspond with higher RSI highs. The indicator’s midpoint (50) now provides support, with failure below potentially triggering profit-taking.
Fibonacci Retracement
Applying Fibonacci to the April swing high ($38.20) and June low ($34.42) reveals key levels. The recent rally stalled near the 61.8% retracement ($46.80), creating a confluence resistance zone with the 200-day MA. The 50% level ($41.31) aligns with the moving average cluster and volume support. Successful clearance above $46.80 could target the 78.6% retracement at $48.90. Conversely, failure to hold $44.42 (23.6% retracement) might indicate trend weakness.
Multiple confluences strengthen key technical thresholds: The $46.70-46.90 zone combines 200-day MA, Bollinger Upper Band, and 61.8% Fibonacci resistance, making it a critical bull-bear battleground. Support near $44.50 benefits from volume validation, candlestick reversal patterns, and the 50-day/100-day MA cluster. The MACD and volume trends currently lack bearish divergences, supporting near-term upside bias. Probable scenarios include consolidation below $46.70 followed by either decisive breakout or retreat to test support layers, with sustained trade above the 200-day MA required to confirm a long-term trend reversal.