Lundin Mining (Friday’s close $7.81) rallied from $2.98 in 2016 to $10.22 in 2017 (A-B) above a rising trend-line (dotted line) and above its rising 40-week moving average (40wMA). The stock fell below these indicators in late 2017 (C) to signal the end of the up-trend and then settled in a trading range between $5 and $8 for two years (dashed lines).
Lundin Mining rallied above its 40wMA in June and recently rose above $8 (above the top of the trading range – D) to signal a breakout and the start of a new up-leg toward higher targets. Lundin Mining had a minor correction recently and found support near ±$7.50; there is also good support at ±$7; only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of $9 and $10. Higher targets are visible.
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Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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