#FTSE #DOW Over the years, Rare Earth magnets have proven so useful we even keep a supply of small Neodymium magnets in the house. These two centimetre long blocks (pictured), when held in place by duct tape or glue, stop the coffee stomper vibrating off the coffee machine. They hold the garden gate closed, provide easy dashboard mountings for mobile phones, ensure the fridge door stays closed. In the case of a recently purchased target rifle, it was a surprise to see the magazine snap precisely into place with a tiny Neodymium magnet.
It was inevitable the wider world would discover uses for these super strong devices, now billed as essential building blocks for clean future tech. Wind turbines, electric motors, electric vehicles, mobile phones, all find an excuse to use our favourite magnets, ones which can actually hurt when a careless finger gets trapped. They are useful but most emphatically not toys.
We received a few emails asking we update our fairly recent opinion (link) on Rainbow Rare Earths, presently trading around the 13p level. The mining company presently operate to major locations in both East and South Africa, extracting the essential elements used to produce permanent magnets now massively in demand for modern electrics. Recently, by reaching 14.75p, LSE:RBW managed trade higher than expected, suggesting some considerable strength may be present for longer term price gains.
This year, we’re opting to play safe with trigger levels, choosing a calculation criteria which can only demand price gains if a particular level is exceeded. In the case of Rainbow, rather than exceed its previous high of 14.75p, we can work out above 15.3p is liable to become a major trigger. Above this should prove capable of propelling the price toward an initial 18p with secondary, if exceeded, at a longer term 21.5p. To be fair, price closure above 18p is liable to prove game changing for the longer term as presently we can speculate on a distant 25p, a new all time high.
That’s about the end of the good news. Then again, maybe some folk shall regard the immediate possibilities as presenting an opportunity. Weakness continuing below 13.25p suggests the probability of travel down to an initial 12p, doubtless capable of a rebound given the presence of Red on the chart. Should 12p break, we hope our secondary calculation at 10.5p shall indeed be anointed with trampoline juice, creating a price level where a future surge upward may commence.
We never expected to have a secret bias due to a liking for posh fridge magnets!
FUTURES
| Time Issued | Market | Price At Issue | Short Entry | Fast Exit | Slow Exit | Stop | Long Entry | Fast Exit | Slow Exit | Stop | Prior |
| 9:49:46PM | BRENT | 55.84 | |||||||||
| 9:52:22PM | GOLD | 1850.94 | |||||||||
| 10:13:23PM | FTSE | 6659 | 6620 | 6607 | 6576 | 6674 | 6700 | 6719.5 | 6757 | 6650 | |
| 10:14:54PM | FRANCE | 5544.2 | |||||||||
| 10:16:52PM | GERMANY | 13888 | Success | ||||||||
| 10:18:40PM | US500 | 3852 | |||||||||
| 10:20:51PM | DOW | 30945 | 30882 | 30815 | 30715 | 30995 | 31120 | 31138 | 31331 | 30967 | |
| 10:24:05PM | NASDAQ | 13555 | ‘cess | ||||||||
| 10:27:08PM | JAPAN | 28699 | ‘cess |
