Fear mongering politicians who are anti Lynas stated they were going to review LAMP operations, possibly forcing Lynas out of Malaysia. IMO, this sent shares tumbling. Individual traders, that is folks not trading big money, look at the chart and see weakness, price below the 200 day moving average. This is traditionally a bear/bull line in the sand. An inexperienced trader will see any bounce below the 200 day as a shorting opportunity, so they add shorts. I invite uninformed anti Lynas fanatics to join in and short Lynas, I would love to see them lose money. The sophisticated trader, managing big money, will analyze the news and see the political risk has been mitigated by the Prime Minister's official statements. Science will be used to review Lynas, not the emotions of fear and hate. IMO, this is why price reversed its downtrend. Lynas is a world class facility. The review committee will be comprised of world class experts, not anti Lynas fanatics. Malaysian authorities know the LAMP is an asset, not a threat. IMO, that is what has changed but the amateur shorts will not cover until either the review is published or the 200 day SMA is exceeded. Enjoy the gravy train while it last.
LYC Price at posting:
$2.10 Sentiment: Buy Disclosure: Held
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