Since we last mentioned Lithium Americas (LAC.TO) in the June 1 issue of the Daily Stock Report the shares have soared 70.8%, and since they returned to the Green Favored Zone of the SIA S&P/TSX Composite Index Report on August 10, they have climbed 48.2%. The shares continue to move up the rankings, rising 11 spots yesterday to 6th place.
Accumulation in Lithium Americas (LAC.TO) shares has accelerated dramatically this week. Earlier this month, a correction was contained at a higher low above the $25.00 round number and the 50-day moving average. In the last two days, the shares have launched up from there, snapping a downtrend line, causing a bearish descending triangle pattern to fail, and breaking out to a new all-time high, all on a spike in volume. Combining these indicators signal the start of a new advance.
Measured moves from previous trading ranges suggest initial upside resistance in the $37.50 to $38.00 area followed by the $40.00 round number. Initial support moves up to $30.00 from the $27.50 breakout point.
Lithium Americas (LAC.TO) has resumed its primary uptrend following a correction, breaking out to a new all-time high to signal the start of a new upleg. Since the start of this month, the shares have completed several bullish patterns including a Triple top and two larger Spread Double Tops.
Based on horizontal and vertical counts, next potential upside resistance tests on trend appear near $33.55, $34.55, and $35.95. Initial support appears near $30.35 based on a common 3-box reversal.
With its bullish SMAX score increasing to a perfect 10, LAC.TO is exhibiting strength against the asset classes.
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