$USAR took a pretty sharp hit, down 4.64%. From $11.94, it plunged straight to a low of $11.29. Trading volume of 4.2M wasn't particularly high, suggesting selling pressure hasn't reached panic levels, but no one's rushing to buy either. News-wise, market sentiment is mainly hung up on the government funding being disbursed in “milestone-based payments”—the money won't come all at once; it depends on progress. That makes the “Western rare earth premium” baked into the valuation look a little shaky. On top of that, $MP also fell 6%, with the whole sector giving back gains.
My take: $11.3 is right around the lower end of the recent consolidation range. If it holds, there's room for a bounce, with initial resistance around $11.9. If it breaks below $11.2 on heavy volume, don't try to tough it out—cut your losses and get out. The $2.8 billion deal in Brazil supports the long-term thesis, but it doesn't solve the short-term cash flow problem. This stock is better suited to waiting for signs of stabilization; no need to rush in and buy the dip.
My take: $11.3 is right around the lower end of the recent consolidation range. If it holds, there's room for a bounce, with initial resistance around $11.9. If it breaks below $11.2 on heavy volume, don't try to tough it out—cut your losses and get out. The $2.8 billion deal in Brazil supports the long-term thesis, but it doesn't solve the short-term cash flow problem. This stock is better suited to waiting for signs of stabilization; no need to rush in and buy the dip.