Cleveland Cliffs Aiming for Double Digits

Elliottwave Forecast  |

Cleveland Cliffs  (CLF) is an American mining company that specializes in Iron Ore. With the demand for construction steel soaring around the world and specially in China, the price of Iron Ore continues to rise which makes big miners such as CLF, BHP, Rio Tinto and Vale a major beneficiaries thanks to the high-grades of the ore in their mines.

Since 2016, CLF made few attempts to close the year above $10 handle and it failed every time despite reaching $12 - $13 area. Will 2019 be any different from the previous 3 years ?

Looking at the weekly chart, we can count 5 swings to the upside which ended around the 61.8 fib ext area $12.44 - $14.07 and produced the 6th swing correction during last year. We consider it as an incomplete bullish sequence as long as the pivot at $5.56 low remains intact. We use our proprietary pivot system to tell us when a cycle has ended and when we need to switch to a different degree. Therefore, as both price and pivot are holding $5.56 then the sequence is suggesting a bullish path toward 100% fib ext area $16.70 - $19.34.

Cleveland Cliffs Weekly Chart

CLF Cleveland Cliffs Weekly Chart 1.12.2019

CLF is already up 10% this month after ending the 6th swing pullback which started from September 2018 peak. The decline happened as a corrective Elliott wave double three structure which found buyers at the blue box 100% fib ext area $76.4 - $6.78. The blue boxes in our charts are the High-frequency areas where the Markets are likely to end cycles and make a turn. Consequently, Cleveland Cliffs is looking to either resume the rally higher to break 2018 peak or at least bounce in 3 waves toward 50% area $10 - $11.

Cleveland Cliffs 4H Chart

CLF Cleveland Cliffs 4H Chart 1.12.2019

DISCLOSURE: Futures, options, and over the counter foreign exchange products may involve substantial risk and may not be suitable for all investors. Leverage can work against you as well as for you. You should therefore carefully consider your investment experience as well as financial condition before deciding if trading is suitable for you.


The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
RIO Rio Tinto Plc 61.11 0.46 0.76 1,581,460 Trade
VALE VALE S.A. American Depositary Shares Each Representing one 14.04 0.03 0.21 11,838,716 Trade
BHP BHP Group Limited American Depositary Shares (Each representing two) 58.30 0.46 0.80 1,146,586 Trade
CLF Cleveland-Cliffs Inc. 11.30 0.43 3.96 29,998,755 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     

INTERVIEW: CEO Dr. Martin Eaton - Heads Up Checkup

Equities.com Host & Contributor Silvia Davi interviewing CEO of Heads Up Checkup, Dr. Martin Eaton.