Base metal miner Labrador Iron Ore (LIF.TO) has consistently been in the Green Favored Zone of the SIA S&P/TSX Composite Index Report since October. Yesterday the shares climbed 3 spots to 14th place.
By the time overall markets crashed in the winter of 2020, Labrador Iron Ore (LIF.TO) had already been trending downward for six months. The major market plunge accelerated the decline and since both bottomed out, Labrador shares have been steadily recovering. Over the last year, the shares have regained their 50-day average, snapped a downtrend line, established an uptrend of higher lows and established support at higher levels following breakouts, all signs of underlying investor support.
Back in November, the shares regained $30.00 and have continued to advance, recently settling into the $34.00 to $40.00 range with more support possible at an uptrend line near $32.50. A breakout over $40.00 would signal the start of a new upleg. Should that occur, next potential upside resistance may appear near $42.50, $46.00 or $47.50 based on measured moves, then the $50.00 round number.
For the last year, Labrador Iron Ore (LIF.TO) has been under steady accumulation, advancing in a step pattern of rallies (signaled by a series of bullish Double Top breakouts) followed by periods of consolidation at higher levels. Currently the shares are in a consolidation phase trading below resistance in the $39.65 to $40.00 area between a prior high and a round number, while holding above support near $35.90 based on a 3-box reversal, and $34.50 based on the low of the most recent O column.
A breakout over $40.00 to a new high would complete another bullish double top and signal the start of a new upleg on trend. Should that occur, next potential resistance may appear near $43.80 based on a horizontal count, then the $49.30 to $50.00 area where vertical counts and a round number cluster.
With its bullish SMAX score increasing to 7, LIF.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.