CLF - Cleveland Cliffs, Inc. - Base & Break
Sorry about the smaller, more crowded images. I'm on the laptop today, and until my internet connection is setup later this week. Thank God for WiFi, eh?
Here's the daily chart of CLF. Looks like a beauty if you ask me. CLF has had this well formed rising channel for the last few months from which it has gotten support from over the past 2-3 days.
In addition, it's been forming a symmetrical triangle with in that channel.
I think it can hit $120-123 over the near term with cooperation from the market & steel stocks.
Before the market opened, US Steel (X) was added to Goldman Sach's conviction buy list. With that news the steel sector gapped up.
Here's the CLF daily chart. It's a bit messy, but I tried to point out as much as I could and I removed any indicators that weren't useful in the trade decision process.
One of the reasons this trade worked out so well was the confluence of supporting factors: support on the daily chart, momentum in the sector, strong volume and a solid opening range bar. It also based below the down trendline of the symmetrical triangle, opening range high, and the R1 pivot point.
That all made for a very low risk trade.
The only other trade of the day was in X, which based under 190. I bought the break and was stopped out below 191.
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