Lithium Americas (LAC.TO) has soared back up the rankings in the SIA S&P/TSX Composite Index Report recently, driving up out of the red zone and back to the Green Favored Zone for the first time in nearly two months. On Friday, LAC.TO finished in 56th position, up 24 spots on the day and up 98 places in the last month.
Two weeks ago, a retreat that saw Lithium Americas (LAC.TO) lose nearly half its value finally bottom out after being contained by support near $26.00. Since then, the shares have been recovering, with support moving up to $30.00 and the shares snapping out of a downtrend.
Gains have accelerated in the two days, with the shares regaining $35.00 and challenging their 50-day moving average near $36.25, where a breakout would confirm the start of a new recovery trend. Based on previous peaks, next potential upside resistance tests appear between $40.00 and $41.00, then closer to $50.00.
Having been in decline since November, Lithium Americas (LAC.TO) has started to show signs of renewed interest. The shares recently found support near $26.25 and have rallied back up above $35.00, completing a bullish Low Pole Warning. Currently, the shares are approaching $36.80 initial resistance where a breakout would complete a bullish double top pattern, call off a previous bearish spread double top, and confirm the start of a new upswing.
Based on previous column highs and lows, next potential resistance on trend appears near $40.65, followed by the $49.50 to $52.50 area around the $50.00 round number. Initial support appears near $32.65 based on a 3-box reversal.
With a bearish SMAX score of 5, LAC.TO is exhibiting weakness against the asset classes, but advisors should note the recent trend in SMAX has been upward as the score was 0 earlier this month.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
