Gediminas Jasionis
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Ucore Rare Metals Inc. (CVE:UCU) (PINK:UURAF) Uptrend Gets Volatile

by Gediminas Jasionis Mar 6, 2011
ucu_chart.pngUcore Rare Metals Inc. (CVE:UCU) (PINK:UURAF) backed off after another serious attempt to break out. The trading volume remained heavy on Friday, as the traders took profits from the previous run.

UCU share price tanked more than 13% by the end of the week, shortly after it had tapped the price of $1.27 per share - a new 52-week high for the stock. Trading volume was 2.5 times the average showing a heavy interest from traders.

The retracement was a sign that masses of traders are still cautious about the continuity of the current uptrend at this point. Still, the share price hasn't breach the obvious trend support, so the chance of reversal should not be bet on just yet.

Intraday action on Friday pointed out we might see another day of share price rally on ucore_logo.jpgMonday as some buying pressure manifested over the last hour of trading. No news had helped to push the stock for a breakout on Thursday, thus the price movement was fairly volatile. The game has changes on Friday though.

On March 4, Ucore release the remaining pre-resource drill results from 2010 program at its Bokan Mountain Project. The update should help to sustain the share price rally.

Before this news, the latest development to fuel the stock rally came in mid-February, when the company completed a serried of discussions on recreation of domestic supply chain in the U.S. rare earth magnet manufacturing industry.

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