Cleveland-Cliff Stock Price Has Given Breakout, What’s Ahead?

• The Cleveland-Cliffs stock has surged for the third consecutive trading session. 
• The CLF stock price has been rated the “BUY” rating by Citigroup.
• Cleveland-Cliff has reported its Q3 Financial report. Profit beats estimate.

The Cleveland-Cliff stock price has been in a good upward move as it has surged for the third consecutive trading session. It surged by over 8% on 24th October 2023 and registered the largest price increase since December 2022. However, the stock price is currently moving in a horizontal range since April 2023. It seems like the stock is inching closer to the upper level of the range.

The CLF stock has been in a downtrend from April 2022 to November 2022. The stock price has melted down by over 64% during that downtrend. It has tried to change the trend from bearish to bullish in between but failed to do so. It seems like some swing traders are actively participating in the stock and are playing between the ranges.

Citigroup has initiated a buy rating on the Cleveland-Cliff stock price. It has upgraded its previous rating of Neutral to Buy, along with the target price to $22. There is a big difference between the target price and the current market price of the stock. 

An Outlook of the CLF Stock Chart

Cleveland-Cliff stock price has been forming a symmetrical triangle pattern on the daily chart as displayed in the chart below. The stock price has recently taken strong support from the lower trendline and is currently showing strength. It has formed a double bottom at the lower levels and breached the swing high of $15.93 recently. It signifies that the stock can move towards a higher level.

The CLF stock price is looking strong as it has surged by over 12% in the last three trading sessions. The trendline resistance of the price is present near the level of $17.35. Apart from this, the other resistance levels are preset at the level of $17.91 and $19.26. Considering the support level, it is present at $13.62 and the other support at $11.82 respectively.

An Overview of the EMAs and the Relative Strength Index

The CLF stock price is trading above the 50-day Exponential Moving average. It has made a failed attempt to close above the 200-day Exponential Moving average in the previous trading session. The stock price has faced a strong rejection from the 200-day EMA. The relative strength index is curving at 61.13, which shows that the momentum is favoring the bulls. Examining the slope of RSI, it is upward which shows that the bulls are gaining more momentum.

Conclusion

The CLF stock price has crossed a strong resistance of $15.90 and inching closer to the upper resistance level of $17.91 and $19.26. However, the stock price has faced a strong rejection from the 200-day EMA which is a negative sign. If it reverses from here, it can come back to the level of $13.68 and $11.82.

Technical Level

Resistance – $17.91 and $19.26

Support – $13.68 and $11.82

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.