I have spent some time looking at this chart given the recent excitement around Rare Earth metals. I am a huge fan of metals in general, so I hope that doesn’t get in the way of my opinion. I have thrown a few other indicators at this chart before I arrived at this position. Please let me know if you agree or disagree with my thoughts about this. I am here to learn and trade thoughts.
Given that USA tariffs are still standing with China, Rare Earth Metals (REMs) retaliatory tariffs are a logical response from China. China dominates this trade across the world. REMs are a strategic metal for just about all manufactured electronics. As Jim Rickards has pointed out in his books, currency wars lead to trade wars and trade wars lead to hot wars. The USA and China are currently in the first wave of the trade war with no significant counterpunch from China…yet.
Now let us look at the chart. I used the Fibo for general reference here. You can see it is more of a general guide than a solid behavior. However, there is enough relevance to include it. Rather than talk about extensions I will refer to the colors and the respective support/resistance line. The primary take-a-way is that this price has bounced off the support or bottom of the grey bar and has not yet tested the resistance line where the blue and grey bars meet, but it will soon.
The volume for this stock is a result of articles published recently related to the stuff I mentioned above. Fear is a great motivator. Now that the initial pump is out of the way, life and visibility have been breathed into this stock. In other words, it is on a lot of peoples radar just waiting for more news on REMs. You can also see that people have not been selling at the price remain at the resistance level represented by the thick horizontal bar.
Next let us check out the MACD. We have momentum pushing this stock higher with lots of green and no sign of cresting lines. The likelihood of a reversal in the short term 7-10 days is very small. But I don’t have a quantifiable method for determining that probability. Leave a comment if you have one.
The trend is my friend! I see an ascending triangle forming with lots of pressure to the upside. This is a very good signal for a price breakout. I don’t thing the pattern will continue much further into the corner because of all the pressure. I think it will make a move upwards next week and test the 17.32 mark around the 4th of July. Coincidentally, there are several political announcements that are expected to be made by the POTUS around the 4th of July. Checkout POTUS’s Twitter and search for the 4th. However, there is always the chance for a breakdown. If that were to occur, I see it happening later in the month. Perhaps a truce is called on the trade war. Who knows, but if it does happen, we are going to test 12.92 very fast. Perhaps even faster than the line I have drawn.
Also worth pointing out the 52 week high is 24.89 and the low is 13.05. given all I have mentioned above, I believe this stock has bottomed already.
In short, I think there is some head room on this stock to reach 17.32. Should that occur I will reevaluate my position. It may be poised for the moon it may not be, but I think it will be a nice easy ride up for the next month.
Love Voltron's hugesack
Given that USA tariffs are still standing with China, Rare Earth Metals (REMs) retaliatory tariffs are a logical response from China. China dominates this trade across the world. REMs are a strategic metal for just about all manufactured electronics. As Jim Rickards has pointed out in his books, currency wars lead to trade wars and trade wars lead to hot wars. The USA and China are currently in the first wave of the trade war with no significant counterpunch from China…yet.
Now let us look at the chart. I used the Fibo for general reference here. You can see it is more of a general guide than a solid behavior. However, there is enough relevance to include it. Rather than talk about extensions I will refer to the colors and the respective support/resistance line. The primary take-a-way is that this price has bounced off the support or bottom of the grey bar and has not yet tested the resistance line where the blue and grey bars meet, but it will soon.
The volume for this stock is a result of articles published recently related to the stuff I mentioned above. Fear is a great motivator. Now that the initial pump is out of the way, life and visibility have been breathed into this stock. In other words, it is on a lot of peoples radar just waiting for more news on REMs. You can also see that people have not been selling at the price remain at the resistance level represented by the thick horizontal bar.
Next let us check out the MACD. We have momentum pushing this stock higher with lots of green and no sign of cresting lines. The likelihood of a reversal in the short term 7-10 days is very small. But I don’t have a quantifiable method for determining that probability. Leave a comment if you have one.
The trend is my friend! I see an ascending triangle forming with lots of pressure to the upside. This is a very good signal for a price breakout. I don’t thing the pattern will continue much further into the corner because of all the pressure. I think it will make a move upwards next week and test the 17.32 mark around the 4th of July. Coincidentally, there are several political announcements that are expected to be made by the POTUS around the 4th of July. Checkout POTUS’s Twitter and search for the 4th. However, there is always the chance for a breakdown. If that were to occur, I see it happening later in the month. Perhaps a truce is called on the trade war. Who knows, but if it does happen, we are going to test 12.92 very fast. Perhaps even faster than the line I have drawn.
Also worth pointing out the 52 week high is 24.89 and the low is 13.05. given all I have mentioned above, I believe this stock has bottomed already.
In short, I think there is some head room on this stock to reach 17.32. Should that occur I will reevaluate my position. It may be poised for the moon it may not be, but I think it will be a nice easy ride up for the next month.
Love Voltron's hugesack