Freeport-McMoRan Plunges 5.94% Amid Technical Breakdown Signals

Freeport-McMoRan (FCX) declined 5.94% in the most recent session, closing at $43.89 with high trading volume of 24.7 million shares. This sharp drop following a brief consolidation phase warrants comprehensive technical examination using multiple methodologies.
Candlestick Theory
The September 9 session formed a decisive bearish engulfing candle, overwhelming the prior three sessions' indecisive action near the $46 level. This pattern suggests strong selling pressure, establishing $46.11-46.75 as immediate resistance. Key support emerges at the August swing low of $41.31 (August 20), reinforced by the April 9 reaction low near $41.60. The failure to hold the recent recovery above $46 indicates vulnerability to further downside.
Moving Average Theory
The 50-day moving average (approximately $44.50) crossed below the 100-day MA (near $45.20) in late August, signaling deteriorating medium-term momentum. The latest close below both averages confirms bearish near-term bias. However, the 200-day MA (around $42.00) maintains an upward slope, providing critical long-term support. A sustained break below this level would suggest broader trend reversal.
MACD & KDJ Indicators
MACD registers a bearish crossover with both lines below the zero level, confirming negative momentum acceleration. The expanding histogram reflects increasing downward pressure. Concurrently, KDJ readings (K: 18, D: 25, J: 4) indicate oversold conditions, though without bullish crossover confirmation. This divergence implies downside momentum may persist despite technically oversold readings.
Bollinger Bands
Price breached the lower Bollinger Band ($44.80) with significant expansion in band width, signaling elevated volatility and continuation potential. Such deviations typically precede either extended trends or mean-reversion bounces. The absence of immediate stabilization near this band suggests sellers remain in control, with the next support emerging at the 1.5-standard-deviation lower band near $42.50.
Volume-Price Relationship
The 5.94% decline occurred on 137% higher volume than the 30-day average, confirming bearish conviction. Previous rally attempts (September 3, August 22) saw above-average volume, whereas pullbacks had lighter participation. This volume profile suggests distribution near resistance. Sustained high volume on weakness may signal institutional selling.
Relative Strength Index (RSI)
Daily RSI(14) at 29 entered oversold territory, approaching levels that triggered rebounds in March and May 2025. However, the indicator's downward trajectory without bullish divergence suggests momentum remains negative. Historical oversold thresholds near 25 provide a monitoring zone for potential exhaustion, though RSI can remain depressed during strong downtrends.
Fibonacci Retracement
Using the swing low of $41.31 (August 20) and high of $46.75 (September 8), key retracement levels include 38.2% ($44.98) and 61.8% ($45.62). The price closed below the 23.6% level ($44.56), indicating weakness. The 50% retracement at $44.03 aligns with the psychological $44 support, where consolidation may occur before testing the critical 78.6% level at $42.12.
Confluence exists at the $42.00 zone, where the 200-day MA converges with the 78.6% Fibonacci retracement and prior reaction highs. Notable divergence appears between oversold stochastic readings and bearish MACD/moving average alignment. This mixed technical landscape suggests potential for near-term bounces within an emerging downtrend, though reversal confirmation requires consolidation above $45.00 with volume support. Traders should monitor the $42.00-$44.00 support band for signs of accumulation versus breakdown.