American Resources Corporation AREC shares are trading higher Wednesday after the company announced plans to build a 2kW mobile electrolytic cell rare earth processing plant.
American Resources Short-Term Chart Analysis: The 15-minute chart above shows the price has been building higher lows throughout the last two weeks. These lows are building up to a potential resistance level of $5 in what technical traders may call an ascending triangle pattern.
The price is trading above the 200-day moving average (blue), giving the stock short-term bullish sentiment.
The stock is trading below the volume-weighted average price (pink). The volume-weighted average price could potentially hold as a short-term support if the price can climb to where the indicator resides.
American Resources Daily Chart Analysis: The daily chart tells a story similar to the short-term chart. The stock price on the daily chart has been forming higher lows for the last three months up to a previous resistance near $5. This resistance can be drawn on a chart by looking for the areas the price was unable to previously break above.
Bulls may like to see the price cross above resistance and consolidate before the price may see a higher move. Bears would like to see the stock stop forming higher lows before it may fall again.
AREC Price Action: The stock trades with a market cap of $21.8 billion. The stock was trading 12.32% higher at $4.78 at last check.
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