1. First, let's look at miner Cliffs Natural Resources.
Cliffs traded positively on Friday, closing up 2.19% at $15.84.
- Friday's range: $15.25-$15.94
- 52-week range: $13.60-$28.98
- Friday's volume: 4,625,010
- Three-month average volume: 5,085,770
Cliffs looks good from a technical standpoint because it is in a confirmed trend reversal to the upside and is trading over the 50-day simple moving average. The trend reversal occurred on June 13, when the chart formed a bullish engulfing signal, followed by another bullish engulfing signal, which is clear confirmation.
Then the chart traded in a normal uptrend fashion, creating higher highs and higher lows, eventually trading over the 50-day SMA.
Cliffs showed up on my rounded-bottom-breakout scanner on July 3, but failed to confirm the breakout the following week. The chart popped up on the scanner again last Wednesday, but failed to break out on Thursday. And yet, it hasn't failed the current uptrend.
Friday formed a bullish engulfing candlestick, which further confirms the bullish sentiment.
I would like to see continued confirmation on Monday, but would feel comfortable entering this trade on Monday's open.
It will likely open on an inside day, meaning within Friday's trading range. I'd like an entry above the 50-day SMA at $15.49, but I'd enter as low as the 20-day SMA at $15.14.