Why Did Freeport-McMoRan Lose Steam?



Why did Freeport lose steam?

Freeport-McMoRan (FCX) is one of the largest copper miners in the world. It closed at $7.2 on February 24—0.55% below the previous day’s close. After starting the week on a positive note and trading near the prominent resistance level of $8, Freeport lost steam. Currently, it’s trading 9.2% below the close on February 22. Recently, analysts at Citigroup downgraded Freeport from “neutral” to “sell” with a price target of $4.5. This created negative sentiment around Freeport. The price levels of $6 and $8 are the nearest prominent support and resistance levels of Freeport-McMoRan.

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Why did Glencore rise 30% in the past eight trading days?

Glencore (GLNCY) is a metals mining and trading giant. It fell 7.8% on February 24. It closed the day at $3.3. This is the lowest day close for Glencore in the past four trading sessions. In the past eight trading sessions, Glencore gained more than 30%. This move was supported by Glencore’s recent plan for early refinancing. According to recent news, the chief investment officer of Harris Associates, David Herro, thinks that Glencore has unexplored upside potential. He increased the stake in Glencore to 8.5%. This is higher than the holdings of Glencore’s CEO Ivan Glasenberg.

Why did BHP fall?

BHP Billiton (BHP) is an Anglo-Australian multinational mining company. It fell 5.4% to $22.8. This is the lowest day close for BHP since February 12. The Samarco dam disaster occurred on November 2015. It’s still haunting BHP. On February 24, seven Samarco executives faced homicide charges from Brazilian police in relation to the death of 19 people in the unfortunate incident. Samarco is a joint venture of BHP and Vale.

Alcoa (AA) is one of the largest aluminum producers. It gained 2.7% on February 24. It closed the day at $8.76. Alcoa started the week on a positive note. It gained more than 13% on the first trading day of the week. Aluminum broke the consolidating zone. It gained on February 24. This helped Alcoa extend its gains. The price level of $9 is the next prominent resistance level for Alcoa.

The Power-Shares DB Base Metals Fund (DBB) gained 2% on February 24.


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