We looked at Cleveland-Cliffs (CLF) on May 6 and recommended that “CLF continues to move up nicely and with the trade at $21 we can suggest raising the sell stop to $16.50 from $15.00. The new Point and Figure charts (above) give us new targets of $25 and $33. Stay long.”
Prices have rallied strongly Thursday, so let’s grab those charts again.
In this daily bar chart of CLF, below, we can see how prices have soared upward on Wednesday and now. Prices are well above the rising 50-day and 200-day moving average lines. Trading volume has expanded and that is bullish and the simple, math-driven On-Balance-Volume (OBV) line is strong. The Moving Average Convergence Divergence (MACD) oscillator has turned upward to a new outright-buy signal.
In this weekly Japanese candlestick chart of CLF, below, we can see that prices are extending the gains from the pandemic low. Prices are trading above the rising 40-week moving average line. The weekly On-Balance-Volume (OBV) line looks like it is turning upward again. The MACD oscillator has been neutral the past three months but a new buy signal seems to be at hand.
In this daily Point and Figure chart of CLF, below, we can see the recent upside breakout and a new price target of $35.
In this weekly Point and Figure chart of CLF, below, we can see a price target of $76 now. Impressive.
Bottom line strategy: Continue to hold longs from previous recommendations. Raise stops to $19 from $16.50. The $35 area is our first price target now followed by $76.
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