Lepanto Consolidated Mining A ($LC) is on major resistance at 0.33 in a weekly chart.
Will the bulls’ strength overpower the bears? For the past 5 days, volume has increased as the price of gold in the world market has dramatically shoot up. Considering that this is the major resistance, selling pressure is concentrated in this 0.33 level. If this is successfully penetrated because of ADX and momentum, another major resistance at 0.455.
Actual support based on traded prices at 0.32, 0.31, 0.305 & 0.30.
Why is the price action of $LC move up? This is purely on the increase of gold prices in the global market. This is a high risk if one is into investing considering the gold fluctuations. Second, there is an on-going arbitration proceedings initiated by LC against the government through DENR in relation to the renewal of MPSA 001-90-CAR. This is a speculative stock.
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