Swing Trade Idea (FCX) – December 06, 2022
Our bearish trade for Tuesday, December 6th is Freeport-McMoRan Inc. (FCX). FCX is part of the Materials Sector, which has performed at 12.64% over the last month, with FCX overperforming relative to its sector at 23.13% over the same period.
FCX had a strong rally into an area of resistance at $40, where it is now showing signs of exhaustion. As this is a counter-trend trade recommendation, we believe FCX will retrace lower with the next support at $34, providing a good risk/reward bearish entry.
As a close, if FCX were to trade above $40 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We also will consider cutting losses on this options trade if the value of the vertical spread moves above $2.48.
