WHAT THE CHARTS SAY

The Globe and Mail (Alberta Edition) - - GLOBE INVESTOR WEEKEND - BY MON­ICA RIZK AND RON MEISELS

Bullish on Labrador Iron Ore Labrador Iron Ore (Fri­day’s close $18.06) had a sharp de­cline from $34.87 to $10.81 (A-B) and set­tled in a bullish In­verse Head-and-Shoul­ders for­ma­tion (solid lines). The stock had a break­out above the top of this pat­tern in late 2016 to sig­nal a break­out, re­newed in­vestor in­ter­est and the start of a new up-leg (C). Price ac­tion over the past three months has been bound by the $17.50 to $20.50 range (dot­ted lines). A rise above $20.50 to $21.00 would sig­nal the re­sump­tion of the up-trend. Only a sus­tained de­cline be­low $16.00 to $16.50 would be neg­a­tive. A rise above $20.50 to $21.00 would sig­nal Point & Fig­ure tar­gets of $23 and $25. Higher tar­gets are vis­i­ble.

Mon­ica Rizk is the se­nior tech­ni­cal an­a­lyst and Ron Meisels is the pres­i­dent of Phases & Cy­cles Inc. (phases-cy­cles.com). And he tweets at @Rons­briefs. They may hold shares in com­pa­nies pro­filed. Chart source: de­ci­sion­plus.com

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