— J.C. Parets (@allstarcharts) January 2, 2020
Today’s Chart of the Day was shared by JC Parets (@allstarcharts). It’s a weekly candlestick chart of the rare earth metals ETF, $REMX. The ETF tracks the companies that are involved with producing, refining, and recycling rare-earth metals such as cerium, manganese, titanium, and tungsten. As you can see, $REMX is in a nasty downtrend and is down nearly 50% in the past two years. Despite this terrible performance, JC points out that the technicals are showing signs of improvement, and he jokes that it’s on his “may not be dead after all” list. The ETF recently found support at the 2016 lows around $11-12. Also, it’s breaking out of a two-year downtrend line and showing a bullish RSI divergence. It’s still in a long-term downtrend, and all-time highs this year are highly unlikely. However, there’s reason to believe that $REMX will see some mean reversion in the coming months.