Cliffs Natural Resources (CLF) has made what I consider a saucer or rounded-bottom formation. This positive chart pattern and an upgrade from TheStreet.com's quantitative service makes CLF an attractive candidate for purchase.
In this daily chart of CLF, above, we can see that a saucer or rounded-bottom formation has been underway for several months. April was the big turn to the upside. Prices rallied strongly and volume expanded. The daily On-Balance-Volume (OBV) line started a strong rise in April that still continues. The 50- and 200-day moving averages gave a golden cross or moving average crossover buy signal in April, too. In the lower panel is the 12-day momentum study and there are currently no bearish divergences.
In this weekly chart of CLF, above, it is easier to see the saucer bottom. don't you think? Prices are above the rising 40-week moving average line, so that is the direction in which we should trade.
The OBV line on this weekly time frame has confirmed the strength in CLF. The Moving Average Convergence Divergence (MACD) oscillator is in a buy mode, rising above the zero line.
CLF looks like a stock to own, but at what price? The price action has been very strong, so a pullback may not happen. However, a sideways correction could develop. I would look to buy a two- or three-day pullback -- sorry, no price level here -- and/or be patient for a sideways move to do your buying.