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Lynas Plays Lazarus

Technicals | Oct 24 2017

This story features LYNAS RARE EARTHS LIMITED. For more info SHARE ANALYSIS: LYC

By Michael Gable 

The Australian market seems to be holding up well after breaking out of the previous range. This implies that there would be more upside over the next few months or so with levels above 6000 a real possibility before the end of the year. In today's report we look at Lynas Corporation ((LYC)).

After shedding most of its value across 2011 to 2014, LYC then spent the last three years building a base. Generally speaking, the larger the base, the larger the move when the stock does break out. During the last several weeks, it has become clear that LYC has broken out of this base. Volume has also picked up substantially during this time. It is difficult to pick targets at this stage, but LYC is most likely to make some large moves higher during the next several months as the volume comes back in and share price recovers. We would look to have an initial stop set down near 14c and then trail it up over time.

Content included in this article is not by association the view of FNArena (see our disclaimer).
Michael Gable is managing Director of  Fairmont Equities (

Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services. 

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2


Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.

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