Critical Metals Corp (NASDAQ:CRML) stocks are sliding after reports surfaced that the Trump administration plans to drop efforts to guarantee a minimum price for U.S. critical mining projects.
Administration Pulls Back on Price‑Support Plan
Reuters says the administration has stepped back from the proposed price‑support plan, pointing to limited congressional funding and the challenges of setting and maintaining government‑backed pricing.
In a closed‑door meeting in Washington, officials reportedly told U.S. minerals executives that future projects will need to stand on their own financially instead of counting on federal price guarantees.
The shift comes as the administration continues pushing to reduce America's reliance on China, which dominates global rare‑earth production. These materials are essential for everything from defense systems to electronics and clean‑energy technologies.
Without the safety net of guaranteed minimum prices, U.S. mining projects may find it harder to secure financing, especially when competing against Chinese suppliers that benefit from scale and strong government backing.
United States Antimony Corp (NYSE:UAMY) pushed back on the Reuters report, calling it "inaccurate, misleading and inconsistent with the facts." The company said its long‑term agreements with U.S. government agencies remain unchanged and stressed that federal support for domestic antimony supply has not weakened.
Critical Metals Shows Bullish Long‑Term Trend Despite Near‑Term Softness
Critical Metals is currently showing a mixed technical picture, with its price trading below the 20-day SMA but significantly above the longer-term moving averages. This suggests that while there may be short-term weakness, the overall trend remains bullish, especially given the strong positioning relative to the 50-day and 100-day SMAs.
The RSI is currently at 58.87, indicating a neutral momentum state. This level suggests that Critical Metals’ stock is neither overbought nor oversold, which could mean a period of consolidation before any significant price movement. MACD is above its signal line, indicating bullish momentum for Critical Metals, suggesting that the stock may continue to see upward pressure.
Currently, there are no clearly defined support or resistance levels for Critical Metals, which means traders should be cautious and watch for potential breakout or breakdown points. If the stock approaches previous swing highs or lows, it could signal a change in trend direction.
In August, the golden cross occurred, with the 50-day SMA crossing above the 200-day SMA, reinforcing the bullish trend. This crossover is a strong indicator that the stock has entered a more favorable long-term trend.
Looking at the 12-month performance, Critical Metals has gained 78.06%, reflecting a strong upward trajectory over the past year. This performance indicates that the stock has been in a solid uptrend, which is a positive sign for long-term investors.
Positioned at 42.2% of its 52-week range, Critical Metals is currently closer to its highs than its lows. This positioning suggests that the stock is in a relatively strong state, but traders should remain vigilant for any signs of reversal or weakness.
CRML Price Action: Critical Metals shares were down 18.23% at $13.96 at the time of publication on Thursday, according to Benzinga Pro.
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