I was asked over the weekend when the stock tops. It's close but my best guess is a double top rather than this spike before anything greater than a 15% decline.
Keep your stops loose and your sphincters (both ends) tight.
Schaeffer's seems to expect another round of price target hikes on any pullbacks:
...Moving on, for the second time in as many weeks, J.P. Morgan issued an upbeat note on MCP, lifting its price target on the equity to $90 from $74. The analysts attributed the positive attention to a brighter view for rare-earth prices, thanks to a healthier Chinese market for the metals and escalating export prices.From Street Insider:
However, there could be plenty more where that came from. According to Thomson Reuters, the consensus 12-month price target on MCP stands at $74.40, implying expected upside of just 2% to the stock's new all-time high of $72.74, tagged right out of the gate this morning.
Technically speaking, the shares of MCP have advanced more than 35% since the start of the year, and have outpaced the broader S&P 500 Index (SPX) by nearly 33% during the past 60 sessions. One potential concern, however, is the stock's lofty Relative Strength Index (RSI) of 72 -- in overbought territory, suggesting the security could be due to consolidate some of its recent gains. Nevertheless, should MCP continue its trek into the black, another round of price-target boosts could add fuel to the stock's fire....
JPMorgan raised its price target on Overweight Molycorp (NYSE: MCP) for the second time in as many weeks as domestic Chinese rare earth prices continue to climb higher.
Analyst Michael F. Gambardella lifted his price target on the U.S.-based rare earth miner from $74 to $90 and reiterated his Overweight rating.
We feel comfortable with these higher numbers given the continued increase in domestic Chinese prices," Gambardella said. "We believe rare earth prices will not fall as significantly as the market anticipates as new supply eventually comes on line outside of China , and note that current Chinese domestic prices are supportive of MCP's valuation."...MORE