The last time we highlighted Lundin Gold Inc (LUG.TO) in our Daily Stock Report was on April 14, 2025. Back then, the shares were exhibiting a steady uptrend which began in April of last year. The initial bottom was in the summer of 2022. In the Spring of last year, the shares were deeply entrenched in the favored green zone of many of the reports it was found in on the SIA Platform, including the SIA S&P/TSX Composite Index. The SIA Platform issued a Green Favored Zone signal back on April 1, 2024, at a price of $19.45.
At the time of our last commentary on April 14, 2025, the shares were at $48.85, which represented an approximate 151% increase in price since the green favored zone signal. Since then, the shares have continued to strengthen further as the closing price is now at $79.54, which represents an additional 62% increase since the April 11, 2025 closing price. This represents a total increase in price of approximately 300% since April 1 of 2024. Currently, the shares reside in the #11 spot of the favored zone of the SIA S&P/TSX Composite Index report. This highlights the power of staying in investments in the green favored zone, and reinforces SIA’s methodology of finding and staying with the winners which exhibit strong relative strength.
In looking at the candlestick chart we see a predominantly steady pattern of higher highs and higher lows since April of 2024. The uptrend really started to accelerate further since the beginning of the year with a rather parabolic pattern emerging until now. Earlier last month the shares pulled back to digest gains, but in the first week of August the shares regained traction when the shares broke above $75.00, and a new higher high emerged to new all time highs.
It will be interesting to see if the shares will continue to forge higher with the price of gold bullion holding firm and flirting near its all time highs near $3500.00. Based on a measured move, resistance may be found at the $85.00 level.
Let’s dive in and see what the Point and Figure Chart looks like today. Point and figure charting excels in trend identification by offering a clear view of price movements and trend reversals. In our last commentary, back in April, we identified the shares were firmly entrench in a strong upleg when they broke above prior resistance at $18.27 - closely coinciding with the shares entering the green favored zone last spring. We also identified upcoming resistance levels at $50.15 and $52.17, which the shares have already surpassed.
As such, in looking at the chart today, the uptrend in still firmly intact with a rising column of 11 X’s in place without even a 3-box reversal. With such a strong move, resistance may be coming at $83.16 and, above that, $88.25. To the downside, support is at the 3-box reversal and prior resistance point of $73.84 and, below that, $66.88 which represents another prior resistance point. With a SMAX score of 10 out of 10, LUG.TO is exhibiting strong near term strength against the asset classes and is exhibiting a bullish Spread Double Top pattern.
Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold mine in southeast Ecuador. Fruta del Norte is among the highest-grade operating gold mines in the world.
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