Wednesday Morning

Gator's Chart of the Day: MCP

This rare earth metals stock may have found a bottom.  It has printed three green candles in a row and Tuesday's was the tallest.  Volume was only average but the stochastics have printed a buy signal and it is so far extended below the 50 and 200 day moving averages that it has plenty of room to rise. 

Tuesday was the first close above the 10 day sma since the down turn began.   The forward P/E is 7 and 27%+ of the float is reported short.  The short ratio is nearly 6 so there is a decent chance for a squeeze.  (P/E and short info from Finviz)

A stop below the bounce point would mean a 10%+ loss from the last close so you need to manage your risk with position size.  Start small and add quickly when you have profits but keep moving your stop higher so you don't let a winning trade turn into a loser.