Freeport-McMoRan Plummets 7.52% as Death Cross and Bearish Candlestick Signal Deepening Downtrend

Freeport-McMoRan (FCX) experienced a sharp 7.52% decline in the most recent session, closing at $60.23 after a volatile move from a high of $61.915 to a low of $58.6625. This large bearish candlestick suggests potential short-term exhaustion or a continuation of a downtrend. Key support levels to monitor include the recent low of $58.66 and prior psychological levels near $60.00, while resistance is temporarily at $63.11. The price action indicates a breakdown from a consolidation range established between $58.38 and $69.44, with bearish momentum likely to test the next support at $55.50.

Candlestick Theory

The recent candlestick pattern forms a "Bearish Abandoned Baby" configuration, with a gap down between the prior bullish candle and the current bearish one. This suggests a potential reversal or continuation of a downtrend. Key support levels include the 2026-01-30 low at $58.66 and the 2026-01-22 low at $58.24. Resistance is temporarily at $63.11 (2026-01-29 low) and $65.13 (2026-01-29 close). The price appears to be in a bearish phase, with a breakdown below $58.66 likely to target $55.50 (2026-01-13 low) as the next critical support.

Moving Average Theory

The 50-day moving average (calculated as ~$59.80) currently sits just above the 200-day MA (~$59.20), forming a "death cross" configuration that confirms a bearish trend. The 100-day MA (~$59.50) further reinforces this, as the price is trading below all three MAs. Short-term bullish crossovers (e.g., 50-day crossing above 20-day) have failed to materialize, suggesting the downtrend remains intact. A retest of the 50-day MA may occur, but a close above $60.50 (2026-01-21 close) would be necessary to signal a potential trend reversal.

MACD & KDJ Indicators

The MACD histogram has contracted, indicating waning momentum, while the MACD line (-$1.20) remains below the signal line (-$0.80), suggesting bearish momentum. The KDJ stochastic oscillator shows the %K line at 15 with %D at 20, entering oversold territory. However, a divergence exists between the KDJ and price action: while the price is declining, the %K line has not yet made new lows, hinting at a possible short-term bounce. A close above $61.17 (2026-01-26 high) would validate this potential reversal.

Bollinger Bands

Volatility has expanded, with the bands widening to ~$3.25. The price is currently near the lower band at $58.66, a classic oversold signal. However, given the strong bearish bias, this may represent a temporary pause rather than a reversal. A break below the lower band could trigger a continuation of the downtrend, targeting the 2026-01-23 low at $58.38. The upper band at $61.915 remains a critical resistance level for a potential rebound.

Volume-Price Relationship

Trading volume surged to 40.77 million shares on the 7.52% decline, validating the bearish move. However, volume has been mixed in prior sessions, with a 2.36% rally on 48.28 million shares (2026-01-29) failing to hold. This suggests selling pressure remains strong, but a surge in volume on a potential rebound above $60.50 would be necessary to confirm sustainability. Divergence between volume and price (e.g., declining volume on lower lows) could signal exhaustion.

Relative Strength Index (RSI)

The 14-day RSI stands at ~28, firmly in oversold territory. While this typically suggests a potential rebound, the broader context of a bearish trend and MACD divergence implies caution. A close above $61.17 would be needed to trigger a short-term bounce, but a failure to hold above $60.50 may see the RSI remain depressed, indicating a continuation of the downtrend.

Fibonacci Retracement

Key Fibonacci levels derived from the 2026-01-29 high ($69.44) to the 2026-01-30 low ($58.66) include 23.6% at $65.80, 38.2% at $64.00, and 50% at $63.80. The current price of $60.23 is near the 61.8% retracement level ($60.00), suggesting a potential consolidation zone. A breakdown below $60.00 would target the 76.4% level at $58.24, while a rebound above $63.80 could retest $65.80 as resistance.

Confluence & Divergences

Multiple indicators concur on a bearish bias: the death cross, bearish MACD, and oversold RSI all align with the breakdown below key support. However, a divergence in the KDJ oscillator and RSI suggests a potential short-term bounce. The key confluence point is the 50-day MA at $59.80; a close above this level would challenge the bearish narrative, while a sustained close below $58.66 would confirm a deeper downtrend.