Molycorp (MCP) Resistance, pivot & Support Levels - 09/21/2011
Resistance levels: $55.71, $52.81, $47.13
Pivot point: $44.23
Support levels:$38.64, $36.65, $29.97
Molycorp Inc. (MCP) rose 2.5 percent to $42.50. The owner of the largest rare-earth deposit outside China had its “buy” rating reiterated by Anthony Young, an analyst at Dahlman Rose & Co., after the shares plunged 22 percent yesterday. Molycorp Chief Executive Officer Mark Smith told CNBC that he expects no change in supply and demand. Morgan Stanley forecast rare earth prices will stabilize in the fourth quarter. Share of Molcorp (MCP) is closed over $41on Tuesday. Molycorp will have resistance at $50 follow by $55 and support area $41 I will keep on eye for this week. Molycorp [MCP) CEO Mark Smith on Tuesday downplayed the impact of speculative buying of rare earths, saying that while it may have temporarily caused prices to escalate, the supply and demand fundamentals remain unchanged.
"While there may be a short-term impact here, Molycorp remains very, very bullish on the prices of these materials," Smith said. "In fact, we're experiencing the highest margins ever in the history of our company."
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