Where is it going from here?

Looking at the chart for 1 month, I see a violent 3 days selloff with very heavy daily shorting seems to set LYC on a near term low.



It looks like LYC has found a near-term bottom. If this is true, the next 2 months will be a zig-zag pattern of LYC going up. Then after that, we see a nice recovery with a big jump again today.

I had a look at the daily short interest for yesterday. The shorts are still fighting on the way up.

LYC LYNAS RARE EARTHS LIMITED FPO 875,325.

It was about 0.9% of the entire number of shares shorted in one day. For the past 2 weeks, about this much was shorted daily.

The problem with the shorts is that they will have to get out at some point. And the late players will jump in a short more and add more fuel to the fire. This set up for a violent recovery and then the shorts will continue to fight and probably there will be sharp down days but the lows will be higher lows.

Once the plant in Kalgoorlie goes into production, I think, there will be a violent upswing as well.

https://www.copyright link/companies/mining/lynas-looks-for-relief-in-countdown-to-rare-earths-deadline-20221113-p5bxr1

It's been close to a year since Lynas signed the contract to build a plant in Texas.

https://lynasrareearths.com/lynas-awarded-us120m-contract-to-build-commercial-heavy-rare-earths-facility/

This plant is scheduled to operate in 2025. So, it's a while from now. However, they probably will update the market on the progress. So, the pipeline of positive news looks good.

So, I am cautiously optimistic that we will be a huge leg up from here. It could be anywhere between a 20% - 40% increase in price.