<div id="readability-page-1">MP Materials Corp (NYSE:MP) stock was last seen down 1.2% at $58.46, heading for its fourth-straight loss. The shares are still up 128% year-over-year, however, with the rare earth manufacturer now retesting support from the 260-day moving average. According to Schaeffer's Senior Quantitative Analyst Rocky White, MP is trading within 0.75 times the 260-day moving average's 20-day average true range (ATR), after spending at least 80% of the previous two weeks and 80% of the prior 42 trading sessions above that trendline. This setup has appeared just four times during the last decade. One month later, the stock was higher every time after these signals, averaging an impressive 29.7% gain. A comparable rally from current levels would place MP Materials stock at $76. <img src="https://imageproxy.pbkrs.com/https://www.schaeffersresearch.com/images/default-source/default-album/mp-0608.png/query-c2Z2cnNuPWQ4M2JjMDZfMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="740" height="433" original-src="https://imageproxy.pbkrs.com/https://www.schaeffersresearch.com/images/default-source/default-album/mp-0608.png/query-c2Z2cnNuPWQ4M2JjMDZfMA"/> Short covering could help fuel gains. Short interest represents 19.2% of MP's available float, and would take shorts over four days to cover at the stock's average pace of trading.</div>

MP Materials stock is retesting its 260-day moving average, a setup that has historically preceded an average 29.7% gain within a month. Currently trading near $58.46, the rare earth manufacturer's shares have pulled back despite a 128% year-over-year increase. Analysts note that high short interest (19.2% of float) could fuel further gains through short covering if the bullish signal holds.

MP Materials Stock's Bull Signal Has Never Been Wrong