This morning Cliffs Natural Resources Inc.(NYSE:CLF) has soared higher by more than 3.00 points to $79.50. This is a new 52 week high for the leading iron ore pellet producer and one of the leading commodity stocks. The stock should have very strong intra-day resistance around the $80.00 level. This is also a short term daily chart resistance level, therefore, a possible pullback is likely around this area.
Other commodity stocks such as Southern Copper Corp.(NYSE:SCCO), and Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) are trading higher this morning. The move comes as the U.S. Dollar Index trades slightly lower at the start of the trading day. Should the U.S. Dollar Index begin to rally or trade higher it could cause the leading commodity stocks to deflate and pullback from the morning highs.
Chief Market Strategist