Iamgold (IMG.TO) shares have caught fire recently, soaring up the rankings in the SIA S&P/TSX Composite Index Report, up out of the red zone where it spent most of the last 18 months, up into the Green Favored Zone for the first time since the summer of 2020. On Friday, it finished in 58th place, up 6 spots on the day and up 161 positions in the last month.
Iamgold (IMG.TO) continues to build a base for recovery. Since bottoming out in September, the shares have slapped out of a downtrend and established a higher low above $3.00. In Friday, the shares closed at their highest level since May of 2021.
Currently, Iamgold is approaching $4.50 initial resistance where a breakout would complete a bullish ascending triangle base and confirm the start of a new uptrend. Should that occur, next potential resistance could appear near the $5.00 round number, and then previous highs near $5.50. Initial support appears near the $4.00 round number.
An extended downtrend, which lasted from August of 2020 to October of 2021 appears to be over with the shares snapping downtrend lines and starting to establish a recovery trend of positive pattern breakouts and higher correction lows. Last week, the shares completed a bullish Double Top to signal the start of a new upleg.
Horizontal counts suggest potential upside resistance tests near $4.50 and $5.40, also, some resistance could appear in the $5.00 to $5.10 area between a round number and previous column highs. Initial support appears near $3.80 based on a 3-box reversal.
With its bullish SMAX score increasing to 9, IMG.TO is exhibiting strength against the asset classes.
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