LAC – Lithium Americas Corp
[MarketWatch and Yahoo!Finance profile links]
A Vancouver mining company, what could go wrong? Fundamental information and opinion is available at the two links above.. The story’s two most prominent highlights are a mine in Peru that is nearing its open, and inferences that a plant being built within proximity to Tesla has potential for a business combination.
Meanwhile, my chart outlook is tracking a recent pullback that may be completing, if not already done. It’s also the deepest correction since March’s low. (I describe the current pullback’s compelling details later.) LAC’s daily chart depicts the rally that had been underway into February’s highs. A protracted decline had doubled from its low. That rally was accompanied by sharply expanding volume, which confers legitimacy on the trend’s sponsorship.
The current rally’s volume has expanded even more substantially than the prior rally. March’s low coincided with the broader market’s risk-off low. LAC fell through its prior low, but only temporarily.
The next chart depicts the the current rally’s more recent stages. Its last consolidation through June resulted in a breakout, once again accompanied by obviously expanding volume. And volume remained above its prior average as the rally extended into a high two weeks ago. The rally’s latest upleg began at the late-June breakout, and the upleg’s Fibonacci 61.8% retracement was tested at the 6.30 low Tue Aug 25.
As of noon Wed Aug 26, LAC is at least $1 higher than the prior day’s low. Closing above 8.10 (green arrow) should start to confirm the rally remains intact. Upside momentum might not resume immediately from there, and pullbacks could still attack or even probe under 6.30. My application of Fibonacci measurements allows a deeper corrective pullback room down to 5.30 (red dashed line) before upside momentum becomes totally disqualified. Extending the rally would next target 11.75 and 16.25.
ANALYST’S OWNERSHIP DISCLOSURE: I CURRENTLY OWN SHARES OF LAC AND MAY INCREASE OR DECREASE MY HOLDINGS WITHOUT NOTICE AND WITHOUT REGARD TO MY OUTLOOK FOR THE STOCK.
Friday’s 4 positions caught at almost 40 points combined. Gapping up dipped back down to barely touch a buy signal at 2433.25-2433.75. Its reaction up extended to its penultimate target at 2443.50, which clearly intended to contain the morning’s rally. The reversal intent wasn’t identified immediately, but triggering it under 2440.00 soon probed its 2436.00-2437.00 target. The next lower target at 2419.25 was probed by nearly 4 points. Another reaction reaction up triggered a buy signal at 2421.00 , probing 2429.00 before the close.
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