Cliffs Natural Resources, Inc. (NYSE:CLF) has bottomed and will soon explode higher towards 30. You might want to read my most recent article published just prior to earnings seekingalpha.com/instablog/6143431-robert-edwards/1783411-cliffs-natural-resources-inc-clf-is-still-bottoming-folks where I was calling for a bottom in this stock as it was happening. I make my calls in real time, getting myself and a few loyal followers in at the beginning of a turn. I am sometimes early in my call, but if you follow my articles you will see that I am rarely wrong. Recently I called the bottom in Lean Hogs and Live Cattle, the bottom in FCX under 30, the bottom in gold stocks, several correct turns in DUST and NUGT, etc.
Get In Now Before The Train Leaves The Station
Cliffs Natural Resources, Inc. (CLF) will not be returning to the lows (think 17) anytime soon, in my opinion, because following a fabulous earnings report, sentiment is improving daily. Traders are rushing in to pick up shares on any dips. After hitting 22 following earnings, the stock corrected a tad under 20, but those lower prices were rejected. We closed back above 20 and yesterday retested the 22 high by hitting 21.98. I expect that we will continue to hold above 20 and will soon overcome resistance at 22 and soon trade towards 25 and then 28 and possibly 30. Earlier I predicted this stock would not trade below 16.65 as it was in freefall, and I was right. The low turned out to be 16.73. Now I am predicting that support holds at 20 and that the 22 high will be taken out in short order. As we retest support at 21 today, it is a wonderful time to get positioned for an explosion higher that should be coming in a few days. If one studies both weekly and daily price charts in CLF over the past several years, one will notice how the stock likes to swing down as if falling off a cliff (pun intended), only to quickly correct back higher $10 to $12. Counting from the recent bottom of 16.73, that means one should expect to see this stock trade in the high 26s to the high 28s. Buying in at the 20 to 21 area, this offers a great profit opportunity to someone willing to stomach some outsized volatility. Notice I did not say risk. I consider this stock very volatile, but I do not consider it to be high risk. The only risk is to the bears who continue to hold their large short position. Panic short-covering buying will provide the catalyst to move this stock higher in the near future.
Disclosure: I am long CLF.