Iron ore and steel stock, Arrium might be one to watch for traders scouring the “beaten up” brigade in search of recovery opportunities.
From a technical point of view, last week’s break of the down trend line dating back to the April peak at $1.42 is a sign that some relief from recent relentless selling might be in sight.
On Friday, the market began to think about following the trend line break with a push through the 20 day moving average. A move above the low at .905 would be a more significant sign of strength. This would suggest that a retracement of the whole decline from $1.42 is in prospect. Another alternative, might be some basing behaviour with price hanging around current levels for a while before ultimately making a break to the upside