- LAC price is currently trading at $19.35.
- LAC stock is currently making a higher lows sequence.
Lithium Americas Corp (LAC) is a resources company specializing in lithium development projects. It was founded on November 27, 2007, by Raymond Edward Flood, Jr. The company’s main projects include Thacker Pass and Caucharí-Olaroz.
On July 31, 2023, Lithium Americas Corporation announced that a significant majority of shareholders, approximately 98.85%, voted in favor of splitting the company into two separate entities. The proposed split will result in the formation of two companies: Lithium Americas (Argentina) Corp. and a new entity named Lithium Americas Corp (Newco).
Will the Price of LAC Fall or Rise in the Future?
In July 2022, the LAC price established a strong support level at $18.98 and subsequently initiated a bullish rally towards the $32.49 resistance level. Following that, the price entered a downtrend, forming higher lows, while the $18.98 support level proved resilient, being tested approximately four times, indicating robust buying interest at that level. Additionally, the price encountered rejection from a descending trendline originating from above.
Currently, the price is trading within a range between $18.98 and $21.74. A potential bullish scenario can unfold if the price successfully breaks above the descending trendline and surpasses the $21.74 resistance level. In such a case, a bullish rally may be expected, with potential targets at $23.74 and further at $26.96.
However, it’s also crucial to consider the descending pattern visible on the chart. Should the price experience a breakdown of this pattern and breach the $18.98 support level, it may lead to a bearish movement with a potential target at $16.47.
The 50 EMA (yellow line) is at $21.84 and the 200 EMA is at $20.30. The LAC price is currently trading below the 50 and 200 EMAs and both EMAs are trending in a downward direction, which indicates that bearish sentiments are prevalent right now.
The relative strength index (RSI) for LAC currently stands at 43.06, indicating a bearish sentiment as it is below the 50 level. This suggests that selling pressure is dominant in the market. However, it’s worth noting that the RSI line is trending in an upward direction. If the RSI line manages to cross above the 50 level and continues to trend upward, it may signal a potential shift to a bullish market sentiment. Investors should closely monitor the RSI for any confirmation of a bullish trend.
The Super Trend indicator also supports the current bearish market sentiment as the price of LAC is trading below the red line. A close above the red line would be necessary to signal a potential shift to a bullish market. Investors should watch for a sustained move above this level to confirm a bullish trend.
The bollinger bands have expanded which indicates the increase in volatility in that area.
Conclusion
The overall chart of LAC currently indicates a bearish sentiment. The critical support level at $18.98 is playing a pivotal role in determining the future price direction. If the price manages to hold above this support level and successfully breaks above the trendline and the resistance level of $21.74, it could trigger a strong bullish rally.
On the other hand, should the price break below the crucial support at $18.98, it may lead to further bearish movement, potentially targeting the next support level at $16.47.
As of now, all the mentioned indicators align with the bearish sentiment, supporting the cautious outlook.
Technical levels
Resistance levels:$21.74, $23.74 and $26.96
Support levels: $18.98 and $16.47
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
