Cleveland-Cliffs Inc (NYSE:CLF) shares are trading higher Wednesday as iron ore prices rise amid supply concerns.
The stock is attracting a growing interest in online trading communities. The company also held a ribbon-cutting ceremony at a direct reduction plant in Toledo, Ohio today (June 9).
Cleveland-Cliffs Daily Chart Analysis:
- The stock has been climbing in recent months, forming into what technical traders call a rising wedge pattern.
- The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment in the stock is bullish.
- Both of these moving averages may hold as an area of support.
Key Levels To Watch:
- Cleveland-Cliffs started forming into the rising wedge pattern in early 2021 and is starting to near the end of the pattern.
- This bearish reversal pattern forms as the stock has a steeper upward trend in the lows than it does with the highs forming a wedge on the chart.
- A break out of the pattern resistance may follow with continued upwards momentum, while a break through the pattern support may bring about a strong downwards push.
Bullish technical traders would like to see the stock continue to hold above the pattern support. If the uptrend can continue and the stock eventually breaks pattern resistance it should continue to climb.
Bearish technical traders would like to see the rising wedge pattern confirmed. For the pattern to be confirmed, the stock would need to cross below the pattern support and then hold the old pattern support as resistance. This may follow with a large downwards move.
CLF Price Action: Shares of Cleveland-Cliffs were up 14.55% at $23.22 at market close Wednesday.
(Photo: Cleveland-Cliffs Holds Ribbon Cutting Ceremony for DR Plant June 9, 2021 via Cleveland-Cliffs)
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