FCX breaks back below 50-day moving average
Freeport-McMoRan Inc. (FCX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FCX ended the week 3.73% higher at 12.24 after losing $0.37 (-2.93%) today, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 12.47, the stock confirmed its breakout through the prior session low after trading up to $0.46 below it intraday.
Daily Candlestick Chart (FCX as at Feb 14, 2020):
Friday's trading range has been $0.57 (4.56%), that's far above the last trading month's daily average range of $0.41. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FCX.
Freeport-McMoRan closed back below the 50-day moving average at 12.46. When this moving average was crossed below the last time on February 6th, FCX lost -4.22% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. Its common bearish interpretation has been confirmed for Freeport-McMoRan. Out of 78 times, FCX closed lower 55.13% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 51.28% with an average market move of -0.27%.