A stock that has been on my list for quite some time is BIM.TO – Baffinland Iron Mines as it popped up in my volume scans. The true winner in the Iron Ore Sector though is LIM.TO – Labrador Iron Mines. It showed up in my scans much later as volume wasn’t above average, until recently that is. Once again a perfect example why stocks with no overhead resistance have the potential to vastly outperform stocks in their peer group with significant overhead resistance.
That being said I am not interested in buying LIM.TO after a 5-fold price increase in less than 2 months. The stock needs to build some kind of consolidation pattern in order to offer decent pressure for a possible entry. BIM.TO is definitely not the strongest stock within the Iron Ore Mining Stock Sector but it offers decent pattern pressure. If the stock can take out resistance and move up another 5-10% it will be a trading candidate worth watching. I do not expect it to replicate LIM.TO’s performance but the 1.00 CDN$ level, a round number, probably will act as a price magnet attracting prices. We will see what happens.
Up-to-date BIM.TO Baffinland Iron Mines chart on my public list.
In order to compare relative strength of the various stocks within the group check the Iron Ore Sector Overview Chart on my public list .
The chart contains the following stocks:
- LIM.TO – Labrador Iron Mines
- BIM.TO – Baffinland Iron Mines
- NML.V – New Millennium Capital
The market is always right.
Have a great evening!
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