SIACharts Logo

Commentary >

Lithium Americas Corp. - (LAC.TO) - June 1, 2021 

Miner Lithium Americas (LAC.TO) has rocketed up the rankings in the SIA S&P/TSX Composite Index Report in the last few days climbing up out of the red zone and entering the Green Favored Zone for the first time since joining the index back in March. Yesterday, LAC.TO finished in 53rd place, up 17 spots on the day and up 126 spots in the last week. Lithium Americas (LAC.TO) had been under distribution and steadily drifting downward on dwindling volumes since a rally topped out back in January above $30.00. Earlier this month, the shares downward trend was contained by a long-term underlying support line. In the last week, the shares have come under renewed accumulation, moving back above their 50-day moving average on increased volume indicating renewed interest from investors.

Initial upside resistance appears near the $20.00 round number, followed by the $22.00 to $22.50 area based on previous highs and lows, then the $25.00 round number on trend. Initial support appears at the 50-day average near $17.55.

A downtrend of lower lows and bearish breakdowns in Lithium Americas (LAC.TO) which started back in January, appears to have to bottomed out with the shares completing a Double Top breakout, their first positive pattern signal since a Triple Top breakout back in December. So far this looks like a trading bounce, but a move back up through $19.15 would complete a bullish Spread Double Top and confirm the start of a new uptrend.

Should that occur, next potential upside support may appear near $21.15 where a horizontal count and a previous column high converge, then a previous high near $22.00 and a previous low near $24.75. Initial support appears near $17.00 based on a common 3-box reversal.

With a bullish SMAX score of 7, LAC.TO is exhibiting near-term strength against the asset classes.

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.

Related Posts

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.