Lithium Americas Corp. - (LAC.TO) March 22, 2022
With commodity prices climbing and resource producers attracting renewed interest, Lithium Americas (LAC.TO) has returned to the Green Favored Zone in the SIA S&P/TSX Composite Index Report from a short dip down into the red zone. Yesterday the shares jumped 51 positions to 54th place.
Lithium Americas (LAC.TO) has staged a significant upturn. The shares had been under distribution since peaking back in November but over the winter, losses were contained by support near $30.00, a level that was successfully tested several times. In the last few days, the shares have turned decisively upward on volume, a sign of renewed investor interest. Yesterday, the shares snapped a downtrend line, signaling the start of a new upswing.
Previous resistance points suggest potential resistance near $43.25, then the $50.00 to $52.50 zone. Initial support appears at the 50-day moving average near $34.60.
Earlier this month, a bullish Bear Trap reversal where a bearish spread double bottom pattern only managed to move for 1 row before reversing course back upward, indicated that downward momentum was slowing and the tide was starting to turn. Yesterday, Lithium Americas (LAC.TO) confirmed that it has turned back upward with a bullish Triple Top breakout and move above $37.50.
Based on the convergence of horizontal counts with previous column highs and lows, initial upside resistance tests appear near $40.65, then $44.85, followed on trend by the $50.00 round number and then the November peak near $52.55. Initial support appears near $34.65 based on a 3-box reversal.
With a bullish SMAX score of 7, LAC.TO is exhibiting strength against the asset classes.
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