We have been writing positive stories about rare earths since the summer. In our July 24 article, we presented some charts of the VanEck Vectors Rare Earth/Strategic Metals ETF (REMX) .
The investing world has taken notice of the supply/demand situation with rare earth metals, so this is a good time to check out the charts of REMX again.
In the daily bar chart of REMX, below, we can see that prices have soared 50% in a few weeks! REMX is trading above the rising 50-day moving average line and stands 50% above the rising 200-day moving average line.
The trading volume has been increasing since late October and the On-Balance-Volume (OBV) line has been strong since late September. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has crossed lower to a take profits mode.
In the weekly bar chart of REMX, below, we can see the impressive turnaround in price. REMX is above the rising 40-week moving average line.
Trading volume has been increasing since May and the OBV line is bullish. The MACD oscillator is bullish in this time frame.
In this updated daily Point and Figure chart of REMX, below, we can see a potential price target of $67. REMX is pointed up in early Friday trading activity so we may get pretty close to this price target.
Bottom-line strategy: When I wrote about rare earths in the summer I doubt if too many Real Money readers paid much attention. With prices up significantly I think now is the time to shift the strategy and take some profits in the $62-$67 area.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
