Perhaps not fully formed as yet, & would need to break and close below 1.52 to trigger (with a target around 1.22).
The ASX Iron Ore sector saw some decent selling recently, right across the board, as can be seen in the Index chart below.
Which is made up from AGO, ARI, BCI, FMG, GRR, MGX.
These six stocks are the highest correlated ASX Iron Ore stocks (Bone's corelation data)
I used Daily closing data to build the chart, which begins in July 2012. (No specific timeframe......vaguely a three day chart)
The large rise in price can easily be seen, and note the highest wave 105 million recently (circled), which did not make any progress higher.
This represents a large Effort (volume) with no Reward (price movement), and the poor close of that bar can also be seen.
There was lots of selling in that up wave, right across the sector, for whatever reason.
Since then it came back on 48 million & tested the breakout above the previous high and has rejected going lower (so far).
The next two wave's are not quite complete yet.
At the current time the line across the previous high is most important, what happens here will most likely define the short term direction. Which in ARI's case probably represents the neckline of the possible HnS on the daily chart you mentioned.
cheers
ARI Price at posting:
$1.59 Sentiment: None Disclosure: Not Held