Why did Freeport break its gaining streak?
After gaining for seven consecutive trading sessions, Freeport-McMoRan (FCX) fell on March 8. Freeport is one of the largest copper miners in the world. It fell by 12.17% on March 8. It closed the day at $8.66. Freeport fell due to the decline in oil and copper prices on March 8. Freeport’s fall is mainly due to weak economic data from China along with a disappointing market report from Goldman Sachs. The price levels of $10 and $8 are the nearest prominent resistance and support levels for Freeport.
Why did Glencore fall 17.5%?
Glencore (GLNCY) is a metal trading and mining giant. It fell by 17.51% on March 8. It ended the day at $3.94. This is the lowest day close for Glencore in the last four trading days. There was an accident at one of Glencore’s mines in the Democratic Republic of Congo. Two people died and five people were missing. Along with the bearish sentiments surrounding the metals market, this accident accelerated the decline in Glencore’s prices on March 8.
Alcoa (AA) is one of the largest aluminum producers in the world. It fell by 7.07%. It closed the day at $9.33. After gaining for two consecutive trading days, Alcoa failed to stay above the important price level of $10. The disappointing report on metals by Goldman Sachs stated that aluminum could fall by 18%–20% in the next 12 months. This pulled aluminum prices lower. It impacted Alcoa’s prices on March 8. The price level of $9 is the important support level for Alcoa in the short term.
Weakness in base metal prices impacted the equity prices of BHP Billiton (BHP) and Rio Tinto (RIO) on March 8. BHP Billiton is an Anglo-American multinational mining company. It fell by 8.78% to $26.61 on March 8. The price levels of $30 and $25 are the nearest resistance and support levels for BHP. The Power-Shares DB Base Metals Fund (DBB) and the SPDR S&P Metals & Mining ETF (XME) fell by 2.36% and 7.5% on March 8.