Fellow Investors,
The uptrend in USGT remained intact as the share price bounced back from early profit-taking at the end of the day, setting up for a resumption of the rally tomorrow. USA Graphite (USGT) is consolidating its remarkable gains over the past two weeks, offering investors a great opportunity to buy shares while they are still below $0.80. Short-term momentum traders are still taking profits as more than 600,000 shares have changed hands during the first hour of trading of 2013.
USGT rallied more than 21% over three trading days between the close on Christmas Eve and the high on December 28. Since hitting a high of $0.849 on December 28, the shares have seen some profit-taking from short-term traders but the uptrend we have seen since breaking out of the wedge pattern on December 24 is still intact.
Today's correction is another opportunity—maybe the last opportunity—for investors to pick up some cheap USGT shares. The early selling we saw this morning has been exhausted and there are still plenty of buyers around looking to pick up USGT at lower prices.
Now that Congress has resolved the fiscal cliff crisis, the markets are once again concentrating on business instead of politics. That means that investors are starting to think about what commodities and materials will benefit as the economy continues to recover.
An article on the Bloomberg website pointed out that Molycorp, the only major producer of rare earths in the United States is now in play as a possible takeover candidate, driving Molycorp shares sharply higher.
USGT is aggressively acquiring graphite exploration properties in Nevada with the aim of becoming the only major natural graphite producer in the United States. It isn't much of a leap tosee the interest in Molycorp's rare earths overflowing into USGT's graphite.
The characteristics of the markets for rare earths and for graphite are remarkably similar. Both rare earths and graphite are important, strategic minerals used in a wide range of critical high-technology products. China is the world's largest producer of both rare earths and graphite and has taken steps to curb the export of both minerals.
That is the reason you should take advantage of the correction in USGT to buy some cheap shares before USGT finds itself in play as a takeover candidate because of its position as the leading graphite company in the United States.
Don't miss out! Take advantage this opportunity to act today.
Happy Trading!
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