First thing first, daily fluctuation in Neodymium price may not...

First thing first, daily fluctuation in Neodymium price may not affect the SP as much as you would think. Just look at last 4 weeks' price movement up to Fri 18-Oct-2019, Neodymium (blue line) -6.74% and LYC (purple line) virtually unmoved, losing 1c or -0.4%.



If you look at the 3 year chart, the Neodymium price movement is even less prominent relative to LYC. This is because AL's achievement on LAMP NEXT and politics has been the dominant factors.



Back to the SP actions today, LYC closed +7c or +2.77% at 2.60 after the Quarterly report.

As cautioned in my Thursday night Post #:40942953: "(3) Beware of the shorters before Quarterly Report", it did played out on Friday with a heavy casualty of -2.69%. Short covering was heavy in the 1st hour of trade clocking up 2.22M shares which is 41.3% of today's total turnover.

Some buyers would come back but with no clarity on PDF development, the SP mean reverted to 50% between yesterday's close of 2.53 and today's peak of 2.71 = 2.62 and finally closed at 2.60.

Next few bars would confirm if SP could claw back into the UT channel of form a weaker channel. While all momentum indicators are pointing down, SP remains under pressure. No reason for the short sellers to retreat!