Why these 4 ASX shares are crashing lower today

Atlas Iron Limited (ASX:AGO) is one of four ASX shares crashing lower on the market today. Here's why…

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The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) looks set to have a good finish to the week. In afternoon trade the index is higher by 0.5% to 5,512 points thanks to gains in almost all sectors.

Unfortunately not all shares have been climbing higher. Four shares in particular have crashed lower. Here's why:

Atlas Iron Limited (ASX: AGO) shares have dropped almost 5% to 2 cents despite the iron ore price climbing beyond US$75 a tonne according to the Metal Bulletin. I believe today's decline is likely to be a result of profit taking. After all Atlas Iron's share price has now doubled in value in just the last 30 days. Whilst the iron ore price could still go higher, I'm reasonably bearish on its outlook. Because of this I would suggest investors move into other areas of the market.

Estia Health Ltd (ASX: EHE) shares are down 2% to $2.91 despite there being no news out of the embattled aged care operator. Even though its shares are lower today, they are still up by around 4% this week following the release of a positive strategic update. In the last few months Estia Health has developed a habit of downgrading its guidance. Thankfully this week management reaffirmed its earnings guidance for FY 2017. The company expects underlying EBITDA between $86 million and $90 million this year.

Programmed Maintenance Services Limited (ASX: PRG) shares have dropped 4% to $1.64 today to wipe out the majority of this week's gains. The staffing, maintenance, and facility management services provider climbed over 13% this week after releasing a better-than-expected half year result. But since then investors have headed to the exits in their droves. Whilst the first half was an improvement, I still feel it has a long way to go before it is investable.

Resolute Mining Limited (ASX: RSG) shares are lower by over 3% to $1.19 after the gold price continued to sink lower. At present the spot gold price is fetching US$1,175 an ounce, down around 4.5% from a week earlier. With the US Federal Reserve expected to raise interest rates shortly, both the gold price and the gold miners could come under further selling pressure.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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