Freeport-McMoRan has struggled since the spring and some traders may see risk of further declines.
The first pattern on today’s chart is the series of higher highs and higher lows since early August. The copper miner fell through the bottom of that channel on Tuesday, creating a potential bear-flag breakdown.
Second is the zone around $43.30. It was a high in December and important breakout level in March. FCX recently tried to hold this support area but yesterday tore through it.
Third, the breakdown is occurring around the 200-day simple moving average. That may suggest that a longer-term uptrend is ending.
Speaking of the long run, the price action between April and July could be viewed as a top. Not only did FCX fail to break above its 2022 peak. It also formed a potential head-and-shoulders reversal pattern.
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