Bullish on Labrador Iron Ore

Labrador Iron Ore 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. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.