FCX breaks back below 20-day moving average
Freeport-McMoRan Inc. (FCX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, FCX finished the week 3.07% higher at 8.74 after losing $0.16 (-1.8%) today, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading $0.14 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (FCX as at May 22, 2020):
Friday's trading range has been $0.29 (3.31%), that's below the last trading month's daily average range of $0.41. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FCX.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Southern Doji showed up on May 1st, FCX gained 2.84% on the following trading day.
The share closed back below the 20-day moving average at 8.82 for the first time since May 15th.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further buying could move prices higher should the market test April's close-by high at 9.48.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Its common bearish interpretation has been confirmed for Freeport-McMoRan. Out of 151 times, FCX closed lower 55.63% 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 54.97% with an average market move of -0.54%.