break out is on .....charts look good

Wow! what a day for ARU holders - The sell side was shattered today on the back of one of the top 5 volume days ever for ARU.

The stock really Picked up steam on the back of further increases in the basket price of ARU rare earths. Arafura reported that the price of the Nolans rare earth mix has increased 255% since december!....Judging by the volume today the big money has taken notice.

Technically ARU is looking extremely strong and further gains appear likely.

Here is the 6 Month daily Chart




Arafuras share price has increased more then 100% in just over a month, the daily chart is looking very bullish with a recent EMA cross. With the 41 EMA crossing the 195 EMA Arafura is now technically in a long term uptrend.

What adds to the bullishness of this chart is that the recent pullback nailed the 50% retracement level and the 195 EMA and has since strongly rallied off these levels.
This type of price action is a hallmark of stocks in a strong up trend.


Heres a look at the 4 year Weekly Chart




This chart is looking extremely bullish.
ARU has achieved a strong break out on very heavy volume of a long term down trending weekly resistance line.

This resistance line has previously thwarted at least 7 attempts at a break out with the stock failing to break and close above this line on a weekly Time frame.

The most recent attempt at a breakout of this line was last week, but due to the fact that aru had put on such a strong run and with the daily stochastics being overbought it didnt have the energy to break and hold above the resistance line.
With the daily stochastics now crossing back up from a lower level ARU has the momentum to break and hold this long term resistance level...this is a very bullish development.

Check out the repeating weekly ranges for this stock, i think that ARU is well on its way to a minimum of 1.20, any pullbacks should be treated as a buying or accumulation opportunity. Due to the strength of rare earths prices there is no reason why Arafura should not be trading at much higher levels.


Here is the 4 year monthly chart




The long term monthly chart also shows a breakout of a down trending monthly resistance line. The importance of this break is highlighted by the previous failed attempts to break and hold above this line on a monthly time frame.

The stock has now broken the monthly down trending resistance line and has also broken above a monthly resistance zone at 67-73 cents. This level should now become very strong support for the stock.



I feel that ARU is a rare investment opportunity at current levels. Fundamentally its deposit is increasing in value exponentially it seems with every passing week.

Rare earths are very much in demand at the moment as restrictions from the chinese have put the sector firmly into the spot light. The big money is now starting to take notice with massive volumes and strong gains on both ARU and LYC.

Technically the picture also looks excellent with strength across all time frames. A recent golden EMA cross on the daily chart, a breakout of a long term down trend on the weekly chart and a breaking of resistance levels on a monthly time frame.

The break out is On! - The Charts look good - Further gains are Very Likely .....GOOD LUCK!!