The red metal is up more than 20 percent from its late January low—and that's given one stock a big boost: Freeport-McMoRan. The mining giant is up 40 percent in the same period, but one trader who relies heavily on the technicals and options market, is cautious on the stock, and he warned that the rally could be over.
"I think we're about to see some serious selling pressure in Freeport," said technical analyst Andrew Keene on CNBC's "Trading Nation" on Thursday. Despite the recent strength, Freeport shares are still lower on the year, down roughly 2 percent.
What concerns Keene most is that on a one-year chart, Freeport-McMoRan shares have shown what's called a "rounding top." Technicians often see this particular pattern as a reversal of a long-term trend. "To me, this looks like a weak stock that is about to roll over and I think it could head back to the low around $16.50," said Keene, founder of Keene on the Market. Keene also noted that FCX will run into resistance at its 150-day moving average and 200-day moving average.