Daily Stock Report

Labrador Iron Ore Royalty - (LIF.TO) - January 20, 2022

Base metal miner Labrador Iron Ore (LIF.TO) has returned to the Green Favored Zone of the SIA S&P/TSX Composite Index Report for the first time since August, continuing a climb back up the rankings that started in the red zone in November. 

Today’s Labrador Iron Ore (LIF.TO) chart is a good example of why we look to both Point and Figure and Candlestick for insights into market trends and support/resistance levels. The late summer selloff in LIF.TO shares was, in fact, contained by a long-term uptrend support line which dates back to the March 2020 market bottom. Since then, accumulation has resumed and the shares have been steadily recovering lost ground in a Rising Channel of higher highs and higher lows. 

Currently, the shares are approaching the $40.00 round number where a breakout would complete a saucer/rounded bottom pattern. Next potential resistance tests after that appears at the July peak near $46.00, then $47.50 based on a measured move and the $50.00 round number. Initial support appears at the 50-day average near $36.50, then $35.00. 

Back in October, a selloff in Labrador Iron Ore (LIF.TO) ended with support emerging at a higher low near $32.50. 

The shares then spent the rest of the year base building. This month, accumulation has resumed with the completion of a bullish Double Top calling off previous bearish patterns and signaling the start of a new upswing. 

Initial upside resistance appears at a previous column high near $41.25, followed by the August peak near $46.45, and then $48.35 based on a horizontal count. A 3-box reversal suggests initial support may appear near $35.90. 

With a bullish SMAX score of 9, LIF.TO is exhibiting 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.