In our previous report (Aug. 22, 2020 – $7.81), we identified a large trading range mostly between $5 and $8 (dashed lines), a breakout from this range (A) and targets of $9 and $10. The stock fulfilled and exceeded our targets and reached a high of $16.07 (a 106-per-cent gain in eight months – B).
Lundin Mining Corp. LUN-T (Friday’s close $12.74) became overbought at that time, started a correction and found support near $9 (C), but remained below its 40-week Moving Average (40wMA) and below $11.25 for about six months (dotted line). The recent rise above $11.25 and above the Average signalled the start of an up-trend toward higher targets (D). Only a sustained decline below $11 would cancel the upside potential.
Point & Figure measurements provide targets of $14 and $16. Higher targets are visible.
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Monica Rizk is the senior Technical Analyst of Phases & Cycles Inc. (www.phases-cycles.com). Chart source: www.decisionplus.com
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