MCP May Be Ripe To Rally

Molycorp, Inc. (MCP $5.49) may be ripe to rally

Technically, MCP triple bottomed at $4.55 since 11/2013. It is now above both its 50 and 100 day moving averages at 5.11 and 5.33 respectively. Next resistance is its 200 day moving average at around  $6 but its near term upside target may be to fill the gap to $7. The high short interest may cause the target to be realized quickly. Also helping is the rare earth ETF REMX ($36.26) has recently formed Double Bottom formation and may indicate positive expectation of rare earth sector.

Key bullish statistics:

Short interest: 52.4%

Short ratio: 7.6 days

Book Value: $6.8

Secondary stock offering at $5 half year ago

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disclaimer: The above write up is for your information only. You are responsible for your own risk when taking position in these stocks. Author of this blog may already own shares in these stocks.