Rare Earth Metal Investment - Qiao Xing Universal Resources

The speculation of the rare earth metals stocks have drove up share prices of companies such as Molycorp and Rare Element Resources for the year.  After the recent correction that saw some of these rare earth metals stocks dropped as many as 40%, this is probably a good time to come back to these high flying stocks.


Qiao Xing Universal Resource(XING) used to be a telecommunication equipment company.  In 2007 the company switched its focus to natural resource and is renamed to Qiao Xing Universal Resource. The company now focuses on mining and processing rare metal ores and several strategically important base-metal ores, including molybdenum, copper, lead and zinc.  The technical chart indicates positive trend as the stock is above both 50 day and 200 day moving average.  Despite the pull back recently both MACD and KD indicates bullish trend as MACD is above 0 and K line is still above D line.  The stock could drop below $2.5 to 50 day moving average before making a upward move again.