Triple top come back?Having recently posted a Triple Top, Lithium Americas has returned to its previous support level and allowed the indicators to come down into the oversold area. This is a relatively new listing on the Toronto Stock Exchange having completed their IPO in May of this year and has a small float (73.8 million shares). You can read more about the IPO and their property here.
What got me interested in this stock is the 5 red down candle before stabilizing around the support line. More often than not there is what is called a Dead Cat bounce after that kind of a drop in share price and this is what I am hoping to play. I would make entry above the resistance line at $1.50 with a stop loss the recent low of $1.43. Initial target would be $1.70 for gains of 13.3% followed by $1.90 for gains of 26.6%. If it does reach the $1.90 mark in my swing trade time frame (3 weeks), I would certainly reconsider my position at that point and perhaps hope for a break out of the top resistance line. But let's first concentrate on getting that 13.3% gain...
See chart
here and other weekly picks
here.
Cheers!