The last twelve months have produced some important milestones for the Iron Ore Price.
At the end of 2012 the price broke through the downward trend from September 2011 spurring the strong rally in prices experienced in the first six weeks of this year. Halting in resistance around $158 the price, rebuffed, fell until it located a junction of support in June. Since then the price has recovered with some favourable aspects which suggest that it may re-tackle the barrier zone between $150 and $160 with a breakaway propelling prices considerably higher
The share price has experienced a volatile history from its listing in 2004. From a low at 17c in 2005 the price rose strongly to peak at $4.37 in 2008. Topping out in line with the rest of the market the subsequent sell-off lost the stock most of its gain to spike into reversal in November 2008. The initial recovery was swift, before the price settled into a more sustainable trend to reach its peak zone in mid-2011. In this area the price lost momentum and another top formed, breaking down early last year and promoting a significant downward trend. A positive shift in momentum in June supported a turn around which broadened into a reversal phase and was completed in October suggesting the recent price recovery can be extended towards $1.30 and $1.60 in a test of the resistance and potentially higher. This scenario may be threatened by a drop below 95c.
AGO Price at posting:
$1.13 Sentiment: Buy Disclosure: Held
