Molycorp (MCP) Stock Downgrade

By Tim - http://stockstobuy.org

Molycorp (MCP) stock was downgraded at JP Morgan this morning after the firm cut earnings estimates. The new 2012 price target is $66, down from $105. Molycorp (MCP) has been hurt by the slide in rare earth metal prices which spiked earlier in the year. There was a lot of hype around the stock as prices were on the rise, but now it seems the bubble is slowly popping. MCP stock is currently trading at $49.50 in pre market, down 6.6%.

As for the technicals, don't buy until MCP drops below $40. There is major support around $45 if you are looking for a MCP bounce trade.

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