Rare Earths Are Still The Rage
The rare earths stocks really became well know and popular in late 2010. This sector looks to have peaked in early May 2011 with the overall stock market indexes. The rare earths have been staging a short term rally on the daily chart since June 16, 2011. This morning, all of the rare earth stocks are trading higher. This recent move higher in this sector is now getting a little long in the tooth, therefore, this sector is likely going to pullback soon.
Molycorp Inc.(NYSE:MCP) is the leading rare earth stock in the stock market. This stock has rallied higher by $14.00 since June 16, 2011. the stock is now trading into its daily chart 50 moving average which is going to be short term resistance. This morning, the stock is trading higher by $3.57 to $60.60 a share. Short term traders should watch for intra-day resistance around the $61.50 area. The stock will have intra-day support around the $58.90 level should it decline throughout the trading session.
Other rare earth stocks that are trading higher this morning include Avalon Rare Metals Inc.(AMEX:AVL), Rare Element Resources Ltd.(AMEX:REE), and China Shen Zhou Mining & Resources(AMEX:SHZ ). Traders should remember that these stocks often do well when the U.S. Dollar Index is weak and trades lower.