Lundin Gold LUG-T (Wednesday’s close $13.07) rallied from $4.59 in January, 2019, to $13.49 in February, 2020 (A-B), and reversed the trend briefly in March, 2020 (C), then quickly returned toward the previous high (D).
The stock settled in a slightly descending channel for almost three years (dashed lines) and, after a brief dip below this channel in July (E), started an up-leg which pierced above the top of the channel to signal an important breakout (F).
Behaviour indicators including the rising 40-week Moving Average (40wMA) and the rising trend line (solid line) confirm the bullish status. Lundin Gold is currently in the midst of a minor correction for a better entry level. There is good support near $12-13; only a sustained decline below the 40wMA (currently near $11) would be negative.
After a correction, Point & Figure measurements provide an initial target of $17. Higher targets are visible.
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Monica Rizk is the senior technical analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
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