Molycorp

On Nov. 21 I guessed that China may further restrict exports of rare earth metals. Here is a news item from today:

Molycorp Inc. (MCP, $27.08, +$0.65, +2.46%) shares climbed as the Sydney Morning Herald reported China has blocked exports from Baotou Steel, the world's largest rare-earth producer. China dominates the market for rare earths--often used in high-tech gadgets--and tightly controls output. Rare-earth supply/demand, and any reports that speculate on changes to the relationship, can affect pricing and ultimately, the stock performance of rare-earth miners. Analysts said the gains in Molycorp shares also could be from CEO Mark Smith's late-Friday disclosure he purchased 5,000 shares.

Here is a MCP chart. This is bottom picking. Not a generally high probability trade. If the general market picks up I think this company could revisit old highs.

Also, notice the recent new low on low volume. Another indicator of lack of selling pressure. If there is a bottom in here somewhere it will probably manifest as a trading range for awhile.....
gh