By Tim - http://stockstobuy.org
MolyCorp (MCP) is trading down into the $52's today as investors are nervous about the lockup which expires January 20, 2011. When the lockup expires, insiders are allowed to sell their stock if they wish. Molycorp (MCP) stock will have heavy resistance up around the $56 level, so if you are trading MCP and we rally up there, you may want to sell into the strength. However, if MCP breaks above $56.08 and closes above this level, we could see the stock quickly rip to the $58's and this would bring back the day traders.
Resistance Levels to Watch - $54.40, $56.08, $58.25
Support Levels to Watch - $52.30, $51, $50
Molycorp, Inc., a development stage company, focuses on the production and sale of rare earth oxides (REOs) from stockpiled feedstocks in the western hemisphere. It operates the Mountain Pass mine, a non-Chinese rare earth deposit. The company was founded in 2008 and is based in Greenwood Village, Colorado. The company plans to begin production on the Mountain Pass Mine in late 2012.
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