Nearest Resistance: $13
Nearest Support: $10Catalyst: Analyst Upgrade, New Rare Earth Project >>5 Stocks With Big Insider Buying Everyone's favorite rare earths producer, Molycorp (MCP - Get Report), is having a pretty phenomenal week. Shares of the small-cap firm have rallied more than 27% in the last five trading sessions. The upward slingshot has been the result of an analyst upgrade and an announcement that the firm would be launching a new rare earth project in Mountain Pass, Calif. Technically, the move in MCP is critical. Shares had been in a brutal downtrend for most of 2012, but started forming the early stages of an inverse head and shoulders pattern at the start of August. Now shares are approaching their neckline at $13. For this pattern to look "textbook," we'll want to see a right shoulder get formed by a pullback before breaking out in earnest. But the pattern doesn't have to be textbook to be profitable. The buy signal comes on any sustained breakout above $13. Just remember to keep a tight protective stop if you decide to trade this volatile small-cap.
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