Lundin Mining Corp - (LUN.TO) - March 15, 2024 (Daily Stock Report)


With base metals, most notably Copper, along with precious metals like Gold and Silver, breaking out to the upside lately, mining stocks have been moving up in tandem and climbing in relative strength rankings.

Base metal miner Lundin Mining (LUN.TO) for example jumped another 4 spots in the SIA S&P/TSX Composite Index Report yesterday to 18th place. LUN.TO exited the red zone last November and returned to the Green Favored Zone in December. Since then, the shares are up 19.7%, while the S&P/TSX Composite Index is up 5.0% over the same period. Continuing a recovery trend which started back in the fall of 2022 and was confirmed by a higher low in November of 2023, Lundin Mining (LUN.TO) has gone into rally mode. This week, the shares have broken through previous resistance levels near $11.50 and $12.75 on a spike in volume, indicating accumulation has accelerated significantly.

Next potential upside resistance on trend appears at the spring 2021 peak near $14.25, followed by the $15.00 round number, and then $15.50 based on a measured move. Initial support moves up to the $11.50 breakout point.

Back in November, a breakdown by Lundin Mining (LUN.TO) was contained by support at a previous low dating back to 2022. Since then, the shares have been under renewed accumulation. Over the last four months, the shares’ primary upward trend has re-asserted itself with the shares calling off their previous breakdown, snapping a downtrend line and completing a series of bullish Double Top breakouts.

Currently, the shares are approaching $13.00, a close above that level would confirm the current advance continues. Upside resistance appears at the 2021 peak near $14.10, followed by $14.68, $15.28, and $15.90 all of which are based on vertical and horizontal counts. Initial support appears near $11.80 based on a 3-box reversal.

With a bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 9 out of 10, LUN.TO is exhibiting short-term strength against the asset classes.

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