On Friday, sellers pushed down shares of Molycorp (MCP) after it attempted to break to the upside from a five day pennant. It sold off quickly as sellers stepped in around $5.20. Shares are now trading below $5, but may not find support until $4.80. Sellers might be now lurking around $5.
I’ve been noticing many failed patterns, which prompts me to thread with caution as the market could be changing direction.