Swing Trade Idea (FCX) – May 26, 2021
Our bearish trade for Wednesday, May 26th is Freeport McMoran Inc (FCX). FCX is part of the Materials Sector (XLB). FCX has experienced a 4.17% gain in the last month and its’ 1M trend turned neutral yesterday.
FCX has started to reverse after an over extended rally providing an ideal bearish entry. As copper prices pullback, FCX is expected to break below $40 support and move lower.
As a stop loss, if FCX were to trade above $43 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves below $1.41.