MCP Molycorp Weekly Chart Rare Earths Overbot Rising Wedge Negative Divergence

MCP Molycorp chart is a darling for the rare earth momo crowd. The bulls keep pumping it but it is currently setting up with negative divergence. Using the closing prints above, the chart is ready to go down, but, some leeway must be given to respect the 61.80 HOD in early January. A print above this level, say 62+, looks to be the ideal short entry, should it occur.

The 45-55 range from late 2010 was retested last week but the lower volume shows less interest in the ticker. A bullish stock would have blown the previous volume away, MCP did not. Looks like price is placing a top right now with the lucky bullish winners since Fall 2010 looking for Joe Sucka to get all excited about the rare earths and run in to take their shares. Projection would be top now at 59.65-62.50, then down moving forward. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.