Watch these price levels for MP materials after Apple can increase the DOD investments

The focus of the shares of MP materials (MP) remained in the focus yesterday after they rose by 20% yesterday that Apple (AAPL) plans to invest 500 million US dollars in the rare Earths company.

The company will deliver Apple as part of the promise of the Tech giant metals to spend more than 500 billion dollars in the USA over the next four years. The news of the Apple engagement came only a few days after the Ministry of Defense took over a share of 15% in the only rare earths in the United States, since Washington for rare earths depends less on nations such as China to get a top priority and a national security problem.

The shares of MP materials have increased almost four times since the beginning of the year and have increased by 70% this month alone. The stock decreased by 1.5% of around 57 USD after trading on Wednesday afternoon.

In the following we take a closer look at the MP materials and apply technical analyzes to determine the most important price levels that are worth observing.

Flag sample outbreak

After MP material shares were recorded in a flag for the 50-day moving average (MA). In recent times, the price organized a Breakaway gap over the pattern that accelerates the upward trend of the stock.

While the relative strength index confirms the Bullish Price impulse, it also flashes a reading over 80 to signal extremely over -tasted conditions.

Let us analyze the diagram of MP materials to predict where the move of the share may be on the way next, and indicate two important support levels that can be viewed during the profit.

Where next to MP materials?

Investors can use the BARS pattern tool to predict a short-term optimistic price target for the share. When using the technology to MP Materials' diagram, we extract the bars from which the impulsive movement is higher that preceded the flag pattern, and overlooked them from the outbreak last Thursday.

The analysis that predicts a potential continuation train projects a target of around 85 US dollars. With regard to the duration, the previous analyzed earlier trend played over 15 trading days, which means that the current strong step higher could take until the end of this month if prices.

Main support levels that are worth observed to be observed

During the profit in the stock, investors should first observe the level of USD 39. This area in the table could offer support near the high high of the last month, which also marks the peak of the flag pattern.

Finally, with a larger retreat in MP materials, the price-performance assembly could accommodate 30 US dollars lower support, a level that is currently just above the 50-day-MA. Investors can search for entry points in this region near the base of the flag pattern and swing high in April.

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Until the date on which this article was written, the author has none of the above securities.