Rare Earth Stocks – Get Ready

Rare Earth stocks are prepping for a move. They have been down most recently but they are showing signs that the move lower may be over for now………or may continue. Which will it be? Lets’ take a look.

Molycorp, $MCP

Molycorp, $MCP, rose off of a bottom at year end and has been building a bull flag. That flag is starting to leak lower but the Hammer reversal higher candle printed Tuesday may change that. Weighing in on the downside the RSI has been unable to turn bullish, so perhaps that is a Hanging Man reversal lower candle. A move over 30 confirms higher and below 27.50 lower. There are others as well, mostly penny stocks that are similar, so stick to the this one or Rare Element Resources just below.

Rare Element Resources, $REE

Rare Element Resources, $REE, looks like Molycorp. The RSI trending lower and the flag leaking, but with a Hammer or Hanging Man candle depending on your timeframe. A move over 6.50 confirms another leg higher and one below 5.50 another leg down towards 4.85.

Avalon Rare Metals, $AVL

Avalon Rare Metals, $AVL has a similar look with a move over 3.25 confirming it higher with a target of 4.00 and a move under 2.80 lower, and confusion from the doji print Tuesday.

Quest Rare Metals, $QRM

Quest Rare Metals, $QRM, is a bit more clear cut lower, with a RSI falling through 50 and a MACD about to cross negative, backing up at trend lower continuing. The only pause is the Hammer printed Tuesday. Under 2.55 it has a rendezvous with 2.15 again. A hold and move back over 2.87 confirms a move back to the recent high at 3.42, with a second higher low.

Something is going to happen. As you wait to find out, take in some history, and Get Ready by Rare Earth.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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