MCP 60 min Oct 6th
MCP (Molycorp Inc) has hit the first target for a quick 7% gain. MCP was posted as a Long Trade Setup on Thursday afternoon & went on to trigger an entry on a break above 1.37 later that afternoon. At this time I’m only viewing MCP as a quick oversold, counter-trend trade based off the intraday chart although the stock is starting to exhibit some early signs of a possible near-term 0r better bottom in this low-priced, rare earth stock. If I continue to see bullish developments in both MCP as well as the rare earth sector, MCP has the potential to morph into a longer-term trade with a target of at least 2.40.
Once again, unlike most of the trade ideas posted on RSOTC, I have only listed the actual resistance levels on this 60 minute chart vs. the suggested sell limit level, which are typically set slightly below the actual resistance level in order to minimize missing a fill, should the stock reverse just shy of resistance. As of now, this chart still looks constructive & a move up to any of the next three targets (1.60, 1.70 & 1.81) seems likely at this time. With that being said, consider booking partial or full profits and/or raising your stops, depending on your trading plan.