Freeport-McMoRan's Death Cross: Copper Giant's Pivotal Moment

Freeport-McMoRan Inc. FCX just hit a bearish milestone: a Death Cross. This technical signal, where the 50-day exponential moving average dips below the 200-day, is often seen as a harbinger of extended selling pressure—and FCX stock's recent performance doesn't inspire optimism.

Chart created using Benzinga Pro

FCX stock has slumped 12.06% over six months and 16.11% over the past year, reinforcing the downtrend.

Adding to the bearish case, FCX stock has been trading below its five, 20 and 50-day moving averages. Although, news from Indonesia has currently lifted the stock above its short-term moving averages. The MACD reading of negative 0.77 and an RSI of 46.22 suggest neutral momentum but a potential tilt toward oversold conditions.

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Copper's Crucial Role, But Headwinds Mount

Behind the stock's struggles, Freeport's operations in Indonesia face significant obstacles. The company is negotiating for an export permit to ease global copper shortages, exacerbated by disruptions at competitors like First Quantum. Meanwhile, Freeport's Manyar smelter—key to its Indonesian operations—remains offline after an October fire, with operations not expected to resume until mid-2025.

Despite these challenges, copper's importance to green energy and infrastructure keeps Freeport in the spotlight. If Freeport secures increased export quotas, it could temporarily ease supply constraints. Yet, Indonesia's push for domestic processing underscores a global trend: resource-rich nations prioritizing local value addition over raw material exports.

What It Means For FCX Stock Investors

Freeport's Death Cross and challenging macro environment suggest near-term downside risk. While its efforts to secure export permissions could provide a glimmer of hope, the technical indicators paint a bearish picture for now.

Copper's vital role in global supply chains ensures long-term relevance, but for FCX stock investors, patience—or caution—might be the name of the game.

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Image created using artificial intelligence via Midjourney.