"Much as players in the REE space like to underestimate the discrimination of the investor pool we think it is evident that investors have finally started sorting the likely survivors from the doomed and the process is being carried out in a remarkably accurate fashion," Ecclestone observed.

"We note that a few of the more marginal wannabes that had stronger assets outside the REE space in the first place and were merely dabbling to try and add some shine to their stock price have been the first to exist," he added.
In his analysis, Ecclestone suggested, "The REE space has taken on a rancorous tone in recent times with companies involved in catfights over who will prevail, while some newsletter writers and analysts have been vilified for calling it as they see it."

"We have to suspect that the high tension in the air is the result of more than a few parties thinking that it is a race for survival and thus pushing or tripping a competitor will advance their own cause," he added. "The criticism directed towards realists in the analytical community displays a fear that mere words alone can prick the bubble. If the REE phenomenon is that fragile that it cannot withstand a few naysayers then it is an over-stretched bubble indeed."

Meanwhile, Ecclestone advised, "It is not clear what will dramatically thin the ranks beyond a financing drought. Quite a large number of 'no-hopers' are financially well-padded so they can outlast a long drought."

Eoin Treacy's view Rare earth metal prices have fallen abruptly this year on increased Chinese supply, albeit unsanctioned by the central government. Related shares have subsequently fallen sharply and are in need of a catalyst to reignite investor interest.

Molycorp remains in a relatively consistent downtrend from the May peak. It posted a downside weekly key reversal last week and needs to sustain a move above 44¢ to question the progression of lower rally highs and supply dominance.

Great Western Minerals has pulled back to the region of the 200-day MA and continues to range mostly above 60¢. A clear upward dynamic would reconfirm support in that area.

Ucore Rare Earths (previously Ucore Uranium), despite a great deal of volatility, has held its progression of rising major reaction lows since early 2009. However, it will need to sustain a move above 80¢ to break the six- month progression of lower rally highs and indicate a return to medium-term demand dominance.

Lynas accelerated lower to find at least short-term support in the region of A$1. It needs to hold above that level to suggest demand is returning to dominance beyond the short term.