While I was thinking of writing an article covering some of the dangers of using blindly the RSI indicator and searching for a chart to demonstrate this, I came across the 5 year chart for FCX.
FCX Contracting Price Channel 2009 - June 2012
FCX Zoomed in July 2010 - June 2012
One thing that is interesting here is that the price seems to be forming a collapsing price channel so the stock might show some break out action in the coming months. You can see how the stock was unable to break the $28.70 resistance level in July 2010 and then in October 2011. At the same time a downward trend was gradually formed in the beginning of 2011 which led to the green bearish trend line you can see in the charts above. It will be interesting to see what the stock decides to do as this price channel keeps contracting.
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