Although it is rare that anyone wins prizes from attempting to jump the gun on an extended base for a stock or market, at Rare Earth Minerals (LON:REM) it may be the case that just about enough has been done, for impatient traders to return to the fray.
This is said in the wake of the weekly close for the stock towards 0.92p and the 50 day moving average, a feature which has been in place as resistance for the shares since September. Indeed it can be seen since the autumn began we have never been treated to more than one end of day close the 50 day line.
Therefore the obvious trigger for buyers currently would be a two-day close above the 50 day moving average. But it should also be remembered that there are couple of other decent technical triggers around at the moment. The first comes in the way that the 200 day moving average at 1.13p has continued to rise even as the shares have delivered their consolidation pattern at and just below the 0.8p in recent months. An extended upturn for the RSI currently running at the 35 level also tilts the momentum here to the positive. The conclusion is that aggressive traders could go long of Rare Earth Minerals at current levels, provided that money management was enforced just below the 0.8p October support. The initial technical target is the 200 day average over the next 4 to 6 weeks.
