Investor Frenzy: Freeport-McMoRan Inc. Shines with Strong Results

Investor Frenzy: Freeport-McMoRan Inc. Shines with Strong Results

Freeport-McMoRan Inc., a prominent global mining corporation, specializes in the extraction and processing of copper, gold, and molybdenum. Recently, the company's stock price, FCX on the NYSE, experienced a significant drop after reaching a 30-day peak of $40.76. This former high point now poses a formidable barrier for potential buyers, potentially making it challenging for them to surpass this level of resistance.

During the initial quarter of this year, Daymark Wealth Partners LLC, a well-known institutional investor, significantly boosted its ownership in Freeport-McMoRan Inc. (NYSE:FCX) by an impressive margin of 37.3%.

In April of this year, Freeport-McMoRan announced its earnings results for the preceding quarter, which concluded on April 21st. The quarterly report revealed impressive profitability, with the company reporting earnings per share (EPS) of $0.52. This surpassed market forecasts by $0.05, as industry analysts had anticipated an EPS of $0.47 for the same period.

FCX Stock's Range-Bound Dance: Seize the Upside Potential


FCX price action draw ‘bull flag’ pattern; Source: Tradingview


The stock price of FCX on the NYSE has been exhibiting fluctuations within a descending parallel channel since the beginning of this year. In a broader context, the price movement is forming a pattern known as a 'bull flag' or 'pole and flag pattern.' In the meantime, it is anticipated that Freeport-McMoRan Inc.'s stock (FCX-NYSE) might soon break free from this bearish range and encounter a robust resistance at the $47 level before reaching the significant milestone of $50.

At present, the FCX stock price is positioned at the $38.8 level, experiencing a notable intraday decline of 4.76%. Based on data obtained from Google Finance, the average trading volume stands at 12.27 million, which seems insufficient to overcome the current bullish obstacle. Furthermore, the OBV indicator suggests a scarcity of buyers in the FCX market.

FCX price closes at 100-SMA; source: Tradingview


In the midst of the recent market sell-off, the FCX stock price experienced a decline that caused it to fall below the 20-day simple moving average (20-SMA) and close near the 100-day simple moving average (100-SMA). As a result, this stock has garnered attention as one of the top losers.

However, there is a notable observation that the 200-day simple moving average (200-SMA) is seen as a robust support level, which could potentially be revisited in light of the retracement indication from the relative strength index (RSI). It is worth noting that the RSI is approaching the 50-mark, coinciding with the moving average convergence divergence (MACD) signaling an imminent crossover into the lower region.

Buyers must effectively manage support at the 100-SMA to shield themselves from a potential downturn, as technical indicators are suggesting signs of an upcoming retracement that could push the FCX price towards the $37 range.

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Disclaimer:
This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.