FCX pushes through key technical resistance level
Freeport-McMoRan Inc. (FCX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FCX finished the month 27.56% higher at 11.57 after gaining $0.53 (4.8%) today, significantly outperforming the S&P 500 (1.54%). Today's close at 11.57 marks the highest recorded closing price since February 21st. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (FCX as at Jun 30, 2020):
Tuesday's trading range has been $0.65 (5.87%), that's above the last trading month's daily average range of $0.49. 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 lower than usual for FCX.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 11.23 (now S1), which is likely to act as support going forward. The last time this happened on June 10th, FCX actually lost -13.60% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Freeport-McMoRan. Out of 182 times, FCX closed higher 55.49% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 53.85% with an average market move of 0.67%.