Commodities and Oil Moving Higher, Economic Growth in Asia and Recovery Hopes Driving Prices Higher
Yesterday oil stockpiles showed the largest decrease since September. Commodities broadly rallied on the economic growth rates of Asia and the expected demand needed for raw materials going into 2010.
Metals and mining stocks showed a possible trend changing move yesterday. It has provided investors with a second chance to get in on the coming crisis of expanding economies with scarce resources to supply growing demand.
I did not expect General Moly to correct to these levels. China is actively inquiring of companies at bargain prices with a good asset base.
General Moly (GMO) has great assets and is significantly undervalued.
Bottoming formations take time to form and require patience. Let’s see if this is the turning point.
GMO is coming into long term support which was the previous breakout when I first mentioned it to readers in the beginning of June. I believe this will be the major support needed and GMO will resume its trend higher. With two major molybdenum mines in North America coming closer to production and demand picking up globally GMO should make gains.