Automotive aftermarket parts and accessories producer LKQ Corp. (LKQ) returned to the Green Favored Zone of the SIA S&P 500 Index Report yesterday, having climbed 20 spots on the day and 102 spots in the last month.
LKQ Corp. (LKQ) staged a major double breakout over $32.50 yesterday, not only completing a bullish Ascending Triangle base, but also snapping a downtrend line, combining to signal the start of a new uptrend. Potential upside resistance tests appear near $37.00 and $43.00 based on previous peaks, plus $40.00 where a measured move and a round number converge. Initial support moves up to the $32.50 breakout point from $30.00.
Shares of LKQ Corp. (LKQ) have been trending upward since March with an upward trend of higher lows emerging. In recent weeks, the shares had been in a normal consolidation phase but yesterday, they broke out over $33.65, completing a bullish Spread Double Top pattern and signaling the start of a new upleg.
Next potential upside resistance tests on trend appear in the $36.40 to $37.15 range where a previous high and a horizontal count converge, plus the $43.50 to $44.00 area where a previous high and a vertical count converge, with the $40.00 round number in-between. Initial support appears near $31.70 based on a 3-box reversal.
With a perfect SMAX score of 10, LKQ is exhibiting near-term strength across the asset classes.
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