6.8% jump today on 2x average volume. The 20, 50, and 200 day moving averages were sliced through with relative ease, however, the 50 day ma ultimately held. The trend line from the recent declining peaks was broken indicating a potential change is trend is likely occurring. Increasing upside is likely as the MACD breaks above the 0 level indicating a change of medium-term trend in favor of the bulls.
The Slow Stochastic has plenty of room to run, therefore I expect a run to 6.76 at which point there might be some sideways consolidation before another break to the upside.
On the fundamental side
Avalon Rare Metals Inc. Announces Proposed Public Offering of Common Shares
"TORONTO, ONTARIO, Jul 26, 2011 (MARKETWIRE via COMTEX) -- Avalon Rare Metals Inc. CA:AVL +6.80% AVL -6.02% ("Avalon" or the "Company") announced today that it has filed a preliminary prospectus supplement under its final base shelf prospectus dated May 4, 2011 with the securities regulators in each of the provinces and territories of Canada, other than Quebec, and with the U.S. Securities and Exchange Commission (the "SEC"), pursuant to which the Company proposes to complete an offering of 7.0 million common shares of the Company upon terms to be determined in the context of the market."Rare Earth Names Rally As GE Briefing Paper Circulates (GE)
"A number of names in the Rare Earth industry are trading higher today, including Avalon Rare Metals (AMEX:AVL) up about 4.5% and Molycorp (NYSE:MCP) up about 5.6%. GE Lighting (NYSE:GE) recently distributed a document entitled "Rare Earth Briefing Paper," which stated that a huge growth in consumption coupled with China's production limits and export quotas have driven Rare Earths prices up dramatically."
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