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 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.