FCX climbs to highest close since July 18, 2018
Freeport-McMoRan Inc. (FCX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, FCX ended Wednesday at 16.78 gaining $0.37 (2.25%) on high volume, notably outperforming the S&P 500 (-0.46%). Today's close at 16.78 marks the highest recorded closing price since July 18, 2018. Closing above Tuesday's high at 16.69, the market confirmed its breakout through the prior session high after trading up to $0.46 above it intraday.
Daily Candlestick Chart (FCX as at Sep 16, 2020):
Wednesday's trading range has been $0.83 (5.02%), that's far above the last trading month's daily average range of $0.52. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FCX.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar.
After trading down to 16.32 earlier during the day, the stock bounced off the key technical support level at 16.34 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move lower than 16.39 in the previous session, the share found buyers again around the same price level today at 16.32. The last time this happened on September 4th, FCX actually lost -1.87% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Freeport-McMoRan. Out of 76 times, FCX closed lower 50.00% 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 56.58% with an average market move of -0.47%.