The stock price has been consolidating in a tight range between $34 and $31 over the past few trading session after declining more than 15% in May. Resistance near the 20-day moving average was tested during Tuesday's trading session, but seller made sure that the upward movement gained little traction. A close above the 20-day moving average near $34 would likely see a test of the 50-day moving average near $36. Support on the large cap gold and copper company is seen near the recent lows near $31.
Momentum on the stock price could be changing. The MACD (moving average convergence divergence index) created a buy signal Wednesday were the spread (12-day moving average minus the 26-day moving average) crossed above the 9-day moving average of the spread. The index level is poised to move from negative to positive territory which is a sign of increasing momentum.
The RSI (relative strength index) has climbed from over-sold territory to the low end of the neutral range near 36. Volume on Freeport has slipped and is printing below the 50-day moving average of volume. The 5-day moving average is poised to cross the 20-day moving average which is a sign that a short term trend is in place.
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