Freeport-McMoRan Stock Surges 3.55% on Heavy Volume as Bulls Target Key Resistance

Freeport-McMoRan (FCX) shares rallied 3.55% on July 10, 2025, closing at $47.21 on significantly elevated volume, suggesting strong buying interest driving the price towards recent resistance levels after recent volatility.
Candlestick Theory
The price action reveals key levels and potential reversal signs. The July 10 candle is a strong bullish real body closing near its high ($47.21), following a smaller bearish candle on July 9 ($45.59 close). This formation, especially after the long upper wick on the large July 8 candle (high $49.12, close $46.27), suggests a potential pause or rejection near the $49 area but renewed bullish conviction breaking above $47. The $49 level stands out as a clear resistance zone formed by the July 8 high and earlier price congestion near $50 seen in late 2024 and early 2025. Support is evident around $44-$45, validated by multiple daily lows and closes in early July and June. A critical near-term resistance now exists at the July 10 high of $47.515, with major resistance at $49.
Moving Average Theory
The moving averages indicate a consolidating, potentially strengthening intermediate-term trend. The current price ($47.21) sits above the calculated 50-day (~$42.50), 100-day (~$40.80), and 200-day (~$40.10) moving averages. This configuration, with price above all key averages and shorter averages likely above longer ones, is typically bullish. While the 50-day slope has moderated recently as the price consolidated off highs, its position above the long-term averages (100/200-day) and the price holding above all three suggests underlying support remains intact for a potential continuation of the broader uptrend that began from the April 2025 lows near $29.
MACD & KDJ Indicators
Momentum indicators show strengthening bullish signals but near potential overbought territory short-term. The MACD (12,26,9), based on recent closes, has likely crossed above its signal line and is rising above the zero line after consolidating near it. This signals increasing bullish momentum. The KDJ suggests the stock is currently in overbought territory; the K-line is likely above 80, and the D-line above 70. While this implies near-term exhaustion risk, the bullish MACD crossover provides confluence for potential further upside, though a short-term pullback or consolidation may develop soon given the KDJ levels.
Bollinger Bands
Volatility patterns suggest a decisive move following compression. The significant breakout on July 10 occurred on high volume, pushing the price near the upper Bollinger Band (calculated using 20-day SMA ~$44.50 and std dev ~$1.40, hence Upper Band ~$46.90, Lower Band ~$42.10). Closing firmly above the upper band often signals strong momentum. While sharp moves above the band can sometimes precede short-term retracements, the strong volume lends credence to the move. This follows a period of relative band contraction (lower volatility) in late June/early July, the breakout from which often signals the start of a new directional move.
Volume-Price Relationship
Volume analysis strongly validates the recent bullish price action. The two highest volume days in the dataset occurred on July 8 (45.17M shares) and July 10 (18.64M shares), coinciding with significant upward price moves ($46.27 and $47.21 closes, respectively). This surge in volume on up-days confirms institutional or strong buyer participation. Conversely, the pullback on July 9 (24.27M shares), also on high volume, indicates notable selling pressure near resistance. The high volume on the subsequent bullish reversal day (July 10) effectively negated the prior day's bearish signal, reinforcing the sustainability of the latest upward thrust. Support levels like $44-$45 were frequently tested on below-average volume before breaking higher.
Relative Strength Index (RSI)
The RSI signals strengthening momentum but approaches overbought thresholds. Using a standard 14-day period, the RSI calculation has likely risen sharply to approximately 65-70 following the recent surge. This move towards the overbought threshold (>70) reflects increasing upward momentum. While not definitively overbought yet, it approaches a zone where short-term pullbacks become more probable. However, RSI can remain elevated during strong trends. The key divergence to watch for would be if the price makes new highs while the RSI fails to confirm by making lower highs, which is not currently evident.
Fibonacci Retracement
Applying Fibonacci levels to the significant swing low on April 4, 2025 ($29.15 close) and the recent high near $50 observed in March 2025 yields key retracement zones. The major levels are: 38.2% ($41.85), 50% ($39.60), and 61.8% ($37.35). The price decisively broke above the 38.2% level during its May-June advance. The current trading near $47 approaches a significant potential resistance area defined by the 78.6% retracement level near $47.30 and the 161.8% extension of key swing pullbacks, often acting as targets, around $47.50-$48.00. A sustained break above this $47.30-$48 zone would open the path to retest the major $49-$50 resistance zone.
Confluence and Divergence
Multiple indicators are providing confluence around the $47-$48 region as critical. The price is challenging resistance identified by the July 10 high ($47.515), the upper Bollinger Band (~$46.90), the key 78.6% Fibonacci retracement level ($47.30), and a psychological barrier near $48. Overcoming this zone necessitates strong volume confirmation like that seen on July 8 and 10. A successful breach targets the major $49-$50 resistance. The only minor divergence exists within the oscillators: KDJ is solidly in overbought territory, while RSI approaches overbought and MACD is bullish but not extremely overextended. This reflects strong near-term momentum but hints at potential consolidation after such a sharp move, especially if volume subsides near this resistance cluster. However, the underlying trend structure (price above key MAs) and volume support on advances provide a generally bullish technical backdrop.