Atlas Iron - double bottom iron ore play

CMC Markets

If you are an iron ore and China bull, Atlas Iron is a stock with plenty of leverage to these variables.

In the June quarter the cash cost of  its iron ore production was about $70 per tonne. Atlas needs a higher iron ore price so could get a decent confidence kicker if the market comes to the view that a price north of $100 is sustainable for a while. It's also involved in high stakes negotiations to obtain rail access to Port Hedland and, for good measure, features regularly in press discussion as a possible acquisition target for Chinese companies

All this makes a potential double bottom pattern in the Atlas Iron chart worth keeping an eye on. The pattern would not be triggered unless there is a break above resistance at 69.5c.

Atlas Iron CFD Daily 1 August Atlas Iron CFD Daily 1 August

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