Lithium Americas Corp: Shareholders Approve of Split

• The LAC stock price is currently trading at $19.14 while witnessing a decrease of -1.39% during the intraday session.
• The year-to-date return of LAC stock is -0.73% and the three-month return is 0.90%.

The Lithium Americas Corp. (LAC) is a firm based in Vancouver which engages in lithium development projects. The LAC is now planning to split into two separate companies: Lithium Americas (Argentina) Corp. and the New Lithium Americas Corp (NewCo).

The Lithium Americas stock price sentiment is presently bearish. At the start of 2023, the price observed a rise from $17.70, and with a steady bullish uptrend it reached an annual high on February 9, and it was halted there with a $26.96 resistance level. 

Since then the LAC stock price has been trading bearishly until May when the price again settled bullish with a $23.30 resistance level. Although, the LAC stock price had been showing a negative return for a long time. Hence, If we focus on the weekly and Year to date returns, the only positive peculiarity witnessed is in the previous three-month return of 0.90%.

Now, the Lithium Americas Corp. stock price is witnessing a bearish run. However, future development will likely boost the price action of LAC stock. 

What Will Make LAC a Lithium Giant in the Future?

Lithium Americas Corp.’s separation was approved on August 1 as its shareholders voted 98.85% in favor of separation. 

The firm will focus on the Cauchari-Olaroz project, which is a part of the lithium triangle of Latin America in order to make that lithium available for full commercial use. The same blueprint will be used for its Thacker Pass project in Nevada. 

Technical Analysis of Lithium Americas Corp.

Source: (NYSE: LAC) by TradingView.

The relative strength index (RSI) trades at 40.27 and denotes bearish momentum and indicates weakness in the market during the intraday session.

The Chaikin money flow (CMF) score is -0.19, and it moves with downward momentum, indicating a rise in the participation of sellers in the market during the previous 24 hours. 

The LAC stock price is currently trading below the 20, 50, 100, and 200-day EMAs, indicating weakness in the market. However, it has witnessed downward momentum in the price for a long period of time.  

The current market capitalization of Lithium Americas Corp. stock price is $3.03 Billion with an average volume of 1.712 Million shares. 

Conclusion

The market sentiment has indicated a downward trend for a long time now. However, new developments like the separation of the company and the achievement of battery-quality lithium carbonate take place in the second half of the year, as planned. The $650 Million investment from General Motors along with funding from the US Department of Energy will motivate the company to succeed in the lithium battery sector. 

Technical Levels

Major resistance: $23.32 and $26.96

Major support: $19.70 and $17.58