april chart, page-2

Hi JG,

Did you see the chart's me and bones posted a little while back ??

Iron Ore is beginning to look a little better now, I would have bought that IO chart at the time with a tight stop, & if ARI is well correlated with the price of IO (as Bones suggests), then it is a decent swing trade.

ARI appears to be lagging a little at the minute, often it leads, but not this time (at least so far).

However, there is good evidence that ARI is being accumulated right now.
Using the wave chart, you can see the last leg down was on 18 million shares, then it bounced up a little.
Following that, the next down wave had 40 million shares but it could not/did not make a lower low, and what's more, then price moved higher (it could not do that if all the 40mil was just selling).
Since then it has zig zagged around in typical 'absorption fashion', until the more recent 22 mil downwave.
Which also could not break and hold below the previous low, although it did form a little spring that payed OK (but not great).

So there is a high probability that it is being accumulated, but until it can seriously breakout above the 1.395 resistance, it is most likely going to be in 'absorption mode' (small'ish up and down waves, hoovering up supply).
Keep an eye out for a decent sized shakeout bar (an ARI specialty), ARI is good at these, and it often signals an end to proceedings and the start of a new trend.

I have no idea how long it will be before a breakout is attempted, or how successful an attempted breakout will be.
But a decent effort has been put in so far getting it all ready in preparation.

A somewhat similar set up can be seen on AGO, however it has already broken out, which is interesting as AGO is often the laggard.

I can easily post a 'normal' chart if you want, but once you get used to reading the wave chart, it often has much more to say about itself (and therefore the stock) than a normal chart.

Most likely the best trades will come after a successfully tested breakout (@1.395), if/when it begins to trend again.

cheers