Gediminas Jasionis
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Ucore Rare Metals Inc. (CVE:UCU) (PINK:UURAF) Breaks Out

by Gediminas Jasionis Nov 1, 2011
9ucu_chart.pngUcore Rare Metals Inc. (CVE:UCU) (PINK:UURAF) stock price has reached a critical level which could provide profitable opportunities. The recent news from Ucore also spice things up a bit.

UCU stock price short up 13.4% over the last three days, although the appreciation has somewhat halted just below the 50-day moving average of 57 cents per share. Trading volumes were very promising the last couple of days, reaching 2.2 million on Monday compared to an average 574 thousand.

This price rally is technically a breakout above the resistance of $0.52, but it has only slight fundamental backbone to it and thus looks risky from the long side. Trading opportunity could arise if it manages to break above the 50-day moving average.

8ucore_logo.jpgThe news that provides some support for bulls wasn't material though. On October 31, 2011 the company disclosed to have been testing a new technology for sorting ore. The method called X-Ray Transmission defines pre-concentration of rare earth minerals. It has been successfully used in diamond and tungsten mining, but had no application in rare earth sector thus far.

Ucore is a Canadian exploration company engaged in mining of rare earth elements, uranium and other rare metals. The company's main focus lies in Bokan-Doston ridge rare earth elements property in Alaska.

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