MP Materials Plunges 4.85% Amid Mixed Momentum Signals and Analyst Price Target Hike

Summary
• MP Materials (MP) trades at $67.69, down 4.85% from its $71.14 previous close
• Intraday range spans $66.07 to $69.35, with 7.69 million shares traded
• DA Davidson raises price target to $82 from $32, while Zacks highlights momentum potential

MP Materials is under pressure despite a recent surge in analyst optimism. The stock’s sharp intraday decline clashes with bullish technical indicators and a revised $82 price target from DA Davidson. With mixed signals from momentum metrics and a volatile options chain, traders face a pivotal juncture as the stock tests critical support levels.

Momentum Divergence and Analyst Optimism Fuel Volatility
MP Materials’ 4.85% intraday drop reflects a tug-of-war between short-term bearish technical patterns and long-term analyst optimism. While the stock’s 451% annual gain and Zacks’ 2 (Buy) rating suggest bullish momentum, the K-line pattern’s 'bearish engulfing' signal and RSI at 47 (near oversold territory) indicate near-term profit-taking. DA Davidson’s $82 price target hike—despite the stock trading near its 52-week high of $82.50—highlights structural confidence in MP’s rare earth supply chain dominance, yet immediate volatility persists as traders balance these conflicting signals.

Mining - Miscellaneous Sector Quiet as MP Diverges
Options Playbook: Capitalizing on Volatility and Technical Cues
• MACD: 3.68 (bullish divergence from signal line 4.76)
• RSI: 46.99 (approaching oversold)
• Bollinger Bands: Price at $67.69, 14.6% below upper band ($77.49)
• 200D MA: $31.21 (far below current price)

MP Materials presents a high-volatility trading environment. Key support levels at $68.15 (30D) and $20.48 (200D) suggest a potential rebound, but the bearish engulfing pattern warns of further downside. Two options stand out for directional plays:

• MP20250912P67 (Put):
- Strike: $67 | Expiry: 2025-09-12 | IV: 72.42% | Leverage: 22.56% | Delta: -0.4386 | Theta: -0.0268 | Gamma: 0.0463 | Turnover: $43,875
- IV (high volatility) and gamma (price sensitivity) make this ideal for a 5% downside scenario (projected price: $64.31). Put payoff: max(0, $67 - $64.31) = $2.69.
- MP20250912C68 (Call):
- Strike: $68 | Expiry: 2025-09-12 | IV: 72.68% | Leverage: 20.51% | Delta: 0.5147 | Theta: -0.2761 | Gamma: 0.0467 | Turnover: $61,770
- Delta (moderate directional bias) and theta (time decay) favor this call if the stock rebounds above $68.15. Call payoff: max(0, $64.31 - $68) = $0 (no gain in bearish scenario).

Aggressive bulls may consider MP20250912C68 into a bounce above $68.15, while short-term bears should monitor MP20250912P67 for a breakdown below $66.07.

Backtest MP Materials Stock Performance

MP Materials at Crossroads: Watch $66.07 Support and Analyst Sentiment
MP Materials’ 4.85% decline tests critical support at $66.07, with technical indicators and analyst optimism creating a volatile crossroads. While DA Davidson’s $82 target and Zacks’ momentum score suggest long-term potential, the bearish engulfing pattern and RSI near oversold levels demand caution. Sector leader Newmarket (NEU) rose 0.07%, offering a faint bullish benchmark. Traders should prioritize liquidity-rich options like MP20250912P67 and MP20250912C68, while watching for a breakdown below $66.07 or a rebound above $68.15 to dictate next steps.