QUEST RARE MINERALS LTD V.QRM

Couple of reasons for drop

[mediascan59]

First of all, that news about being able to suck ree's out of the ocean floor definitely had an impact on all ree's across the board. Guess no one thinking about the logistics of that yet, environmental issues, etc.
But more importantly in QRM's case, this stock chartwise is very toppy and still has room to correct itself on the daily chart.
RSI, MACD and Full Sto all turning down.
RSI isn't too bad, but MACD and especially Full Sto were too high and still in overbought territory.
Two red long candles with increased volume suggests further selling into tomorrow unless ree's get their turnaround.
The stock is sitting right at the Fib 50% line ($5.98), which typically is a strong support line to bounce off of, but if this line fails, we should see the Fib 38.2% which is showing $5.74 which happens to correspond to two candles where that level was battled for support/resistance levels 9 trading days ago.
So either Fib 50% holds or watch for buyers to come in at the $5.74 ish level.
If this does occur, the chart will be very healthy for the next leg up in this play.

Happy Trading all,
Mediascan