Lynas is the largest producer of rare earths outside of China.

“Its share price has been in a downtrend since April,” Michael said.

“There had been concerns that a recent water shortage would impact their production at their plant in Malaysia.

“However, a recent update from the company has confirmed that this issue has been rectified. “Despite the stock price chart being in a downtrend, there is some hope on a shorter-term basis.

“The trading range has tightened up in the past couple of weeks, and recently it broke higher (circled – see chart below).

“This is a buying opportunity for short-term traders.

“Initial stops can be considered at the recent low and we expect LYC to recover from here back into the $9’s where we would then have to reassess,” Michael said.

Lynas Rare Earths (LYC)

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