Molycorp (MCP) breaking down on the daily chart
[Update: Covered my position today (11/2) at 9.95 for a 3.7% gain from 10.34]
I haven't taken a lot of trades lately, and mainly that has been because of the unpredictable nature of this market. On Friday I went long on Amazon.com after it showed incredible buying strength after its earnings sell-off. I sold it today at 236.09 from $231 for a +2% gain.
I'm still holding onto AGU from $106, and don't have plans to sell, and now I am going short Molycorp (MCP) at $10.34 with a stop-loss at $10.79.
There is a huge level of support being broken on this stock at that $10.30 - $10.45 level. Assuming this holds for today, we could see increased weakness in the days ahead.
Here's the swing trade short setup in MCP