QRM.V TSX Venture Quest Rare Minerals – Bearish Continuation Triangle Pattern

by Olivier on June 9, 2010

Quest Rare Minerals – QRM.V formerly known as Quest Uranium – QUC.V along with RES.V – Rare Element Resources and AVL.TO – Avalon Rare Metals has to be considered as one of the 3 Leading Rare Earth stocks. The chart has now started to build a triangle pattern which has to interpreted as a bearish continuation pattern as the trend leading into the pattern is down. Technically speaking odds are high the downtrend leading into the pattern will be resumed. Judging from the chart the price target for QRM.V should be much lower than 1.50 – 1.60, but support around this level looks to be decent. Time will tell.

QRM.V TSX Venture Quest Rare Minerals Bearish Triangle Technical Analysis Stock Price Chart

Up-to-date QRM.V – Quest Rare Minerals chart on my public list.

In any case, I would not hunt for perceived bargains as long as the technical picture doesn’t improve significantly. The path of least resistance is clearly down. Don’t try to be a hero and don’t fight the trend. RES.V – Rare Element Resources looks extremely vulnerable as mentioned a few days ago. AVL.TO – Avalon Rare Metals is not going anywhere either. This is not the time to get aggressive within the Rare Earth Sector. Either wait for technicals to improve or for a catalyst to spark buying interest for the whole group.

I also updated the weekly chart of USO – United States Oilfund ETF. The flag that is building also looks like a bearish continuation pattern. The price of crude oil hasn’t broken out of the bullish triangle and the potential 100$ target for Crude Oil now looks much less likely.

USO United States Crude Oil Fund ETF NYSE Weekly Technical Analysis Stock Price Chart

Up-to-date USO – United States Oil Fund ETF chart on my public list.

I am removing both VEN.TO – Ventana Gold and BXI.TO – BioEXX Specialty Proteins from my public list as they have lost their immediate story stock potential. Removing them from my public list serves a purpose. It helps staying emotionally detached. Both stocks did a great job when I put on my trades last year. Now it’s time to say good-bye. No hard feelings. There will be plenty of other great stocks with great story stock potential coming along. In the meantime both remain part of the following sector overview charts:

He who considers too much will perform little. – Friedrich Schiller

My public list with all my charts can be viewed here:
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2791469

Buenas noches!

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