Lynas Corporation Ltd (ASX:LYC) Bearish Divergence
Momentum and Candlesticks say it is time to sell
LYNAS FPO closed down -0.005 at 0.105. Volume was 190% above average (trending) and Bollinger Bands were 55% wider than normal.
Open High Low Close Volume___
0.110 0.110 0.100 0.105 37,274,976
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 0.11 0.09 0.08
Volatility: 107 66 82
Volume: 18,534,604 10,734,718 13,527,711
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
LYNAS FPO is currently 27.8% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of LYC.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on LYC.AX and have had this outlook for the last 30 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 6 black candles for a net of 4 black candles. During the past 50 bars, there have been 13 white candles and 21 black candles for a net of 8 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 9.0909. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 5 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 53.26. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 3 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -53. This is not a topping or bottoming area. The last signal was a sell 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 1 period(s) ago.
Lynas Corporation Limited is engaged in integrated extraction and processing of rare earth minerals, primarily in Australia and Malaysia, and development of rare earth deposits. The Company has a portfolio of aligned assets, which include Mt Weld, which are rare earths mines, located approximately 30 kilometers (km) south of Laverton in Western Australia; Mt Weld Concentration Plant, which is located over 1.5 km from the mine site, and Lynas Advanced Materials Plant (LAMP), which is an integrated manufacturing facility, separating and processing rare earths materials, located in the Gebeng Industrial Estate (GIE) near the Port of Kuantan in Malaysia. The Company’s Australian concentration plant is located in Mt Weld, Western Australia. The Company’s Malaysian advanced materials plant is located in The Gebeng Industrial Park near Kuantan. Its subsidiaries include Lynas Malaysia Sdn Bhd and Lynas Services Pty Ltd.