Iron ore producer, Cliffs Natural Resources Inc (NYSE:CLF) has been under performing the markets as of late. The stock has basically gone in the opposite direction of the equity markets. While this is definitely a negative correlation and should not be overlooked, I can't help but notice an interesting up sloping trendline which is holding the stock from further declines.
As you can see on the chart below, this trendline has been in place since mid June. The trendline has not only provided support, but it has given Cliffs Natural Resources Inc (NYSE:CLF) share price a nice bounce each time it as well. So, should this trendline hold once again, traders going long could see a bounce of anywhere from 5-10% in short order. However, as a smart trader, you must evaluate and locate supporting circumstances when/if the stock trades into this level again. You can do so by noting the volume and other factors which may influence the potential of the trendline providing the stock support once again. Either way, the quick trader can expect an easy quick bounce for simple trade at that level.