General Moly (GMO) Finding Support, Molybdenum Demand Exceeding Supply
General Moly is finding support at the 50 day moving average. It is still early to get in as global demand for resources are expanding and the value of the dollar is decreasing. Assets in the ground which provides leverage to the price of the underlying commodity is the most prudent investment at the moment.
I believe the next several months we will see more merger and acquisition activity in the natural resource sector.
I am still confident that General Moly has two world class assets that is attractive to larger miners and will be bought out at a premium in the next 6 months. The chart definitely shows the clues of large volume, institutional interest in the company. The trend is strong and this is an opportunity to add to this position as it is finding support at the 50 day and the lower bollinger band.
Disclosure: I personally own shares of General Moly.
