From a Technical Standpoint:
---> overbought and has a knack to correct once hits an overvalued
--> above 2 standard deviations away from mean which provides a signal
--. ATR is approaching all time highs which have not been met since major reversals
--> pattern (Dark Cloud Cover) developed on the 18/2/2021 and is an effective pattern when conjoined with other indicators
--> is still but is also a well known lagging indicator and therefore can be misleading
--> Increased buy can show a positive outlook on LYC's future due to news about increased demand
From a Fundamental Standpoint:
--> Minor competitors for market share: Apart from China LYC is the only producer of rare earth resources
--> Growing tensions with China can bring increased demand to LYC
--> American military suppliers such as Lockheed have been showing increased interest for LYC .
--> American US defense invested 30mil for LYC to build a facility within Texas. This is evidence for the deep interest for the business.
--> Unknown whether LYC can handle an overwhelming amount of demand. Are they prepared for a potential influx of interest?
Overall I have come to a simple conclusion. From a short term perspective it LYC is and is due to a minor downturn (2-10%) however within the long run it is evident that if LYC plays its cards right is has a bright future ahead of it. I am leaving my investment strategy as neutral as I would expect a turn either way however I am intrigued to see whether Fundamentals beat .
Any thoughts on this will be greatly appreciated :)
1. With enough bullish momentum such as maintained buy volumes it will break this level and maintain a steady upward way.
2. May weakly meet this level, be unable to break it and then retrace downwards.
This now places 6.51 as a interesting price level and i am intrigued to see what happens.