Apple and the Pentagon Just Poured Cash into This Mining Stock. Is $85 the Next Stop?
A massive 20% single-day surge has thrust rare earths producer MP Materials (MP) directly into the Wall Street spotlight, and for good reason. The company just received a stunning vote of confidence from two of the most powerful entities in the world: tech behemoth Apple and the U.S. Department of Defense.
The catalyst for the stock’s explosive rally was the bombshell news that Apple (AAPL) is investing a staggering $500 million into the firm. This isn't just a simple investment; it's a strategic partnership. MP Materials is set to supply essential rare earth metals for Apple's products, securing a vital piece of the tech giant's supply chain. The deal is part of Apple's broader commitment to inject over $500 billion into the U.S. economy over the next four years, highlighting the critical importance of domestically sourced materials.
As if backing from the world's most valuable company wasn't enough, the news came just days after it was revealed that the U.S. Department of Defense had also taken a stake in the company. This dual investment underscores MP Materials' strategic importance not just for consumer electronics, but for national security interests as well, making it a key player in America's push for resource independence.
The market's reaction was swift and brutal for short-sellers. The stock's price chart shows a powerful "breakaway gap," where the price literally leaped higher on immense trading volume, leaving previous trading ranges in the dust. Technical analysts are now pointing to this powerful surge, using pattern-projection tools to forecast a potential next stop for the stock. Based on the strength of this recent move, some charts are now pointing towards a bullish price target of around $85 per share.
However, seasoned investors know that what goes up can also come down. While the outlook is overwhelmingly positive, traders are keeping a close eye on key support levels. The $39 level is seen as the first major floor, with a more significant support zone located around $30. These are the prices that will need to hold to sustain the newfound upward momentum. With backing from both Silicon Valley and the Pentagon, MP Materials has become one of the most compelling stories on the market.
