Bearish Triangle on Copper Stock

3 Apr 2020

Freeport-McMoRan is one of the most actively traded natural-resource stocks. The copper producer has lost about half its value amid the coronavirus selloff, and now the chart may be setting up for further downside.

This pattern is a straightforward bearish descending triangle. Support has been around $6.15 since the market bounced last week, but FCX has made lower highs since then. Sellers may get active on a break of $6.15 and look for the downtrend to continue.

FCX also has a big debt load, which can weigh on prices when the economy and credit markets are weak. Macro conditions like this are negative for industrial metals like copper.