Lynas Rare Earths Shares Bounce Off Support

This story features LYNAS RARE EARTHS LIMITED, and other companies. For more info SHARE ANALYSIS: LYC

The company is included in ASX100, ASX200, ASX300 and ALL-ORDS

By Michael Gable 

Below is a technical view on Lynas Rare Earths ((LYC)).

The S&P/ASX200 Index has made little progress over the past week, as it takes a not-unexpected cooling off here near the old highs.

What has been moving, however, is the US dollar. The US Dollar Index has started falling again and this has positive implications for precious metals and commodities in general.

The uranium sector is one that were we positive on about 12 to 18 months ago.

The last several months has seen Aussie uranium stocks fall away sharply, but we noted in this report during the past few weeks of bottoming patterns in stocks such as Bannerman Energy ((BMN)) and Boss Energy ((BOE)).

They have run hard but this just should now be the start of the next major move.

Today, we offer a technical view on Lynas Rare Earths.

From early 2022 until mid-2024, Lynas was in a downtrend.

It broke above this downtrend in 2024, came back to retest it earlier this year, and then continued to head higher.

The past few weeks has seen it ease back and bounce off a support line which provides investors with another buying opportunity.

Current levels are a Buy and Lynas should continue to trend higher, ultimately retesting the 2022 highs.

Initial stops can be considered under $7.22.

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

Disclaimer

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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