04Apr10:38 amEST

Even a Bad Stallone Movie Has Its Moments

The stock of Cliffs Natural Resources Inc. has not been much of a, well, cliffhanger, in recent years. In fact, CLF has been soundly atrocious, declining from over $100 per share to a recent low of $1.20. 

The Cleveland-based iron ore miner sure did flirt with the potential of becoming an outright penny stock. But buyers have attempted to make at least some type of stand since mid-January. 

With the rally in commodities and miners this winter, CLF has held of a bit better than most into April, with lower highs but higher lows seen on the daily chart, below. The stock is very heavily-shorted and ripe for a violent squeeze higher is bulls can hold this thing over $3 and preferably $3.10 now. 

Much like steels, gold miners, softs, etc., I am entertaining the idea of them bottoming for a meaningful period of time, but have yet to see the type of confirmation I want. So, they remain short-term trading vehicles for now, including the CLF setup--Even if it does eventually become a penny stock, or worse, even a bad Stallone movie has its moments, and so too do bad stocks in terms of multi-month rallies. 

Also note the improve buy volume pattern in March, perhaps indicating that buyers of serious size see value down here. 

Elsewhere, the firearms plays continue to come in, RGR SWHC, after very steep uptrends. I would hold off on initiating new swing longs here, for now. 

Weekend Overview and Analysi... From Bobby's Room to Ivey's ...

 
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