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Labrador Iron Ore 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.

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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.

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About the Authors
Senior Technical Analyst at Phases & Cycles Inc.

Monica Rizk, Senior Technical Analyst, has a Bachelor's degree in Business Administration and completed the Canadian Securities Institute course. She has been with Phases & Cycles since September 2000 and specializes in the research of Canadian and US stocks using Point & Figure as well as bar chart analysis. More

President of Phases & Cycles Inc.

Ron Meisels, President, Phases & Cycles Inc., has been active as an Analyst since 1971. He was Vice President and Director of Technical Research of Nesbitt Thomson (now BMO Nesbitt Burns) from 1982 to 1990. He was ranked among the top three technical analysts by Canadian Institutions for six consecutive years (Brendan Wood Survey). More

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