The Rise and Rise of Rare Earth Minerals

PUBLISHED: Aug 15 2013 @ 05:59 | Comments (0) | More info about Azeez Mustapha

Rare Earth Minerals stock (LSE:REM) is on the rise. Soon, it would become the rise and rise, based on the chart analysis explained here. The stock was recently caught in some kind of bearish run which dragged on for several months. It was a kind of consolidation to the downside.

Since August 2013, the price broke above the EMA 21, closing above it and shooting skywards. The Williams’ % Range period 20 has also gone into the overbought situation. This means that the stock is under strong buying pressure. The price may reach the resistance level of 0.60 eventually.

Conclusion: Why is this the stock behaving like this? Irrational decisions do no pay when trading is on. Alternatively, when people smooth their positions en masse out of irrational dread, it portends the best long signal. Irrational fear is an action that drives prices. It is likened to some wine that becomes tastier after it is left to ferment. When people smooth their orders en masse, you would usually see bearish moves. This bearish outlook can continue until it becomes significant – something that makes immature speculators more fearful and thus make further trading mistakes. This kind of herd mentality is what gives a huge edge to the experienced bull.

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