LYC:ASX - Lynas to potentially double from US-China Trade war
There are winners and losers in every fight. There are the direct winners of the fight, the ones who lay knock out punches. Then there are losers, those that land bruising blows on their competitors. But there is another class of winners often forgotten; the winners who while the fight is happening pick up the gold teeth and wallets lost by the pugilists. Lynas Corp are proving to be one of the latter.
I haven’t looked at Lynas in at least 6 months but it appears they have announced some restructuring and capital spending at a very opportune moment. www.lynascorp.com/Sh...nas 2025 1931391.pdf
Lynas are a well performing business from what I can gather (I’m a charts guy, not a fundamentals guy) and this dick measuring competition between China and the US is only going to play into the hands of other rare earth metals companies. Lynas have popped out of a down trend that they have been in over the last year and are now testing a short term resistance level. THis is all off the back of Chinas announcement of their rare earth metals market tariff threat. I would expect this to be cracked either this week or next week, but I would like to see the price action come back to rest on 2.30 again before it does. However if it does the same with 2.43 I’d be expecting the same outcome.
Based on previous price levels, if China ends up being serious about its threat 5.00 isn’t an unreasonable target for LYC.
I haven’t looked at Lynas in at least 6 months but it appears they have announced some restructuring and capital spending at a very opportune moment. www.lynascorp.com/Sh...nas 2025 1931391.pdf
Lynas are a well performing business from what I can gather (I’m a charts guy, not a fundamentals guy) and this dick measuring competition between China and the US is only going to play into the hands of other rare earth metals companies. Lynas have popped out of a down trend that they have been in over the last year and are now testing a short term resistance level. THis is all off the back of Chinas announcement of their rare earth metals market tariff threat. I would expect this to be cracked either this week or next week, but I would like to see the price action come back to rest on 2.30 again before it does. However if it does the same with 2.43 I’d be expecting the same outcome.
Based on previous price levels, if China ends up being serious about its threat 5.00 isn’t an unreasonable target for LYC.
Comment:
So there was a nice 25% followed by a 10% drop. It will be interesting to watch it consolidate here and have another attack that the new line of resistance set with that last move. I expect it to keep running if it does. However keep in mind that the commodities markets are pretty slow at the moment given the slow down in the world economy.