Technicals | May 23 2023
This story features LYNAS RARE EARTHS LIMITED. For more info SHARE ANALYSIS: LYC
By Michael Gable
The S&P500 Index has broken to the upside, as we forewarned last week. This follows on from the upside break in the Nasdaq Index that occurred two weeks ago.
The Australian share market hasn't gone anywhere since the start of May and this consolidation may continue for just a little longer.
As such, we are starting to see some interesting set-ups develop on stocks that could be on the cusp of moving higher.
Our chart this week is on Lynas Rare Earths ((LYC)).
We last looked at LYC on 18 April and noted that there were number of signals which suggested that it was a buying opportunity.
Since the high-volume rally a few weeks ago, the stock has traded sideways to consolidate the move. Volume has been decreasing which means that any selling doesn't look too convincing.
Therefore, there is a high chance that LYC has further upside from here and is very close to moving higher again. Current levels are therefore an opportunity to buy or top up. The next level of resistance may possibly come in near $8.50.
Content included in this article is not by association the view of FNArena (see our disclaimer).
Michael Gable is managing Director of Fairmont Equities (www.fairmontequities.com)
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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For more info SHARE ANALYSIS: LYC - LYNAS RARE EARTHS LIMITED