If the stocks you own don’t have to be trendy dinner party topics and if your trading style includes picking through the beaten up brigade in search of value, Arrium might be worth having on the radar.  The steel and iron ore group goes into next Tuesday’s profit result at around 8.5 times F15 earnings and with its chart looking as though it may be in a basing formation.

The chart basing pattern is looking like a potential head and shoulder. If Arrium shares can hold above the potential “right shoulder” at 74.5c and then go on to break through the neck line resistance, the head and shoulder will be completed indicating higher prices to come.

Arrium CFD Daily Arrium CFD Daily