We first identified a breakout from a bullish Inverse Head-and-Shoulder formation (solid lines) on May 20, 2017 ($18.06) and confirmed higher targets of $29 and $33 on June 2, 2018 ($24).
Labrador Iron Ore (Friday’s close $32.06) reached a recent high of $31.36 (A) to signal the continuation of the up-trend and to fulfill the first of our recent targets.
The stock has since pulled back to its 40-week Moving Average (40wMA) where it found support (B) and appears to be resuming the up-trend. There is good support near ±$29, but only a sustained decline below $26-27 would be negative.
Point & Figure measurements provide additional targets of $35 and $37. Higher targets are visible.
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Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com