Nearest Resistance: $11.50
Nearest Support: $6
Catalyst: Filing Delay
Molycorp (MCP) may be trading more or less even on the day, but don't mistake that for a lack of interest; this rare earth mining company is one of the most active stocks trading on the NYSE today. Molycorp is getting attention after announcing that management is delaying filing their annual report with the SEC and postponing its earnings call with investors. Unexpected filing delays are rarely a good thing; often, they involve material unexpected changes to firms' financials, and rarely good ones at that.
Until the report gets filed, the exact reason remains anyone's guess. Technically, shares are sitting right at support at $6, a key level that investors should be keeping a close eye on. If MCP closes below that $6 mark, I'd recommend being a seller -- the technicals haven't looked good for this stock in a long time. A silver lining comes from resistance well overhead at $11.50. If MCP can impress investors on their next call, the firm has a lot of space to move higher before hitting selling pressure.
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