Molycorp Completes Breakout On Words From CEO Mark Smith

SAN FRANCISCO (MarketWatch) — Molycorp /quotes/comstock/13*!mcp/quotes/nls/mcp (MCP 53.00, +0.43, +0.82%) shares surged on Tuesday after the producer of rare earth minerals forecast a rosy outlook for the first quarter. Chief Executive Mark Smith said Monday at a mining conference that the company is on track to hit first-quarter sales targets on the back of higher prices, according to Reuters. Shares of Molycorp jumped 11% to $49.50 in recent trade.

The article above was from about 1:30 today when MCP had rallied over 11%. The 4pm closing price was $52.27 for a daily gain of 17.66%. Notice the double bottom at $42.50 and the top trendline consolidation that played out after the $62 peak at the beginning of January. The volume and the size of the candlestick more than confirm the breakout. I opened a long position near the end of February and recommended it as a buy at $45. Congratulations to long term MCP shareholders.


About Aaron Basile
Market Technician, Equity/Commodity Trader, Austrian Economist, Contrarian Investor

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