Cliffs Natural Resources
Cliffs Natural Resoures (CLF) is another small name that's been seeing huge trading activity lately. This stock has gotten summarily shellacked in 2013, nearly halved since the start of trading this year. And while it looked like CLF investors were due for a reprieve, the latest short-term price action begs to differ.
CLF is forming a head and shoulders top like OPK and ADSK - the big difference with this chart is the fact that Cliffs' setup is extremely short-term. The stock's slanting neckline comes in at $20 as I write.Whenever you're looking at any technical price pattern, it's critical to think in terms of buyers and sellers. After all, head and shoulders setups and other pattern names are a good quick way to explain what's going on in this stock, but they're not the reason it's tradable. Instead, it all comes down to supply and demand for shares. The neckline at $20 is a place where CLF has been able to catch a bid -- it's a price level that, if broken, tells us that sellers have overwhelmed any buying pressure down at that price. That's why it makes sense to run when the neckline is broken, even if the setup only has short-term trading implications.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV