Welcome to RiskMastery's Red Flag Stocks - Stocks with bearish potential.
In this edition, we'll be looking at ASX:LYC ...
I believe this code is at a point of potential volatility.
If price can hold below $5.95 ... Bearish potential may be unlocked.
My key downside targets include:
- $4.78 (Conservative)
- $2.93 (Medium)
- $1.665 (Aggressive)
...
LYC - LYNAS - rare earth anti chinese monopoly play
as the title says, china is once again applying restrictions like they did in 2010, low and behold we have the same price structure!
these plays are cyclical for sure. they sorted their Malaysian issue recently, at least for awhile. i expect their move back to Australia will be facilitated by the western powers...
ASX:LYC
Biggest rare earths mine outside of China.
Swing trade. Price action starting to move back toward the POC (hi vol node) of the most recent accumulation rotation phase. Anticipate the bulls will defend this level and push the price back up.
ST and LT EMA's are both bullish. ST starting to turn bearish and seller volumes starting to dominate.
• Entry...
Australian rare-earths mining company, It has two major operations: a mining and concentration plant at Mount Weld, Western Australia, and a refining facility at Gebeng, Kuantan, Malaysia
Good for collection in the area of $8.7-9.54,
Support 1: 8.61 and Resistance :11.39
If you follow LYC in ASX it is easy to predict the one in OTC US -LYSCF pattern is about...
If break H&S pattern sell at retest. Target might be the low of the significant green bar previously that hasnt really tested before. Relative strength crossed and flipping to downside. Volume starting to increase signify incoming volatility.
H&S neckline price range is 23% to downside before finding support with Selling Climax and range bound
Tighter SL can be...
ASX:LYC
Lynas Rare Earths Limited, together with its subsidiaries, engages in the exploration, development, mining, extraction, and processing of rare earth minerals primarily in Australia and Malaysia.
Rare earth miner Lynas is looking good again on the charts. It pulled back to a previous support / resistance area, and bounced nicely off its 50 day moving average.
Various indicators all looking bullish. MACD / OBV etc about to cross.
Worth keeping an eye on - especially as rare earther.
Text me if you have any questions/comments for me.
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LYC
- Previous analysis was done on 14 Sep - Suggested waiting for a retracement and successful rebound
- Since then, the stock tested $8 levels and today broke through the short- and mid-term supports with above average volume
- Stock is exhibiting high price volatility and may not be suitable for all...
LYC
- Previous analysis was done on 10 Sep - Suggested half entry at 7.10 levels if confident the stock can rebound to 7.50 levels
- If followed half entry suggestion at 7.10 levels, gains would be more than 5% in 2 days
- Stock today closed at 7.60 levels and there is no longer any good setup for entry
- Best case scenario for the overall health of the uptrend...
LYC has been making higher highs but on the weekly chart we can see Bearish Divergence on the MACD and RSI, which is a sign that the momentum may be running out of steam. I expect a decent pull back for a possible buying opportunity. My Buy Zone is between $5.15 - $5.75, where I would be entering after some sort of Bullish price action confirmation. Lets see how...
