• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Basic Materials

Cliffs Natural Resources Has More Upside Ahead

A large saucer pattern on CLF gives us a $14 price target.
By BRUCE KAMICH
Nov 30, 2016 | 12:23 PM EST
Stocks quotes in this article: CLF

In the short-run, Cliffs Natural Resources (CLF) could be considered extended, but a powerful saucer bottom pattern on the weekly chart of CLF suggests we could see even higher prices in 2017.

Looking at this one-year daily bar chart of CLF, below, it would be easy to say that we have made a ton of money and we are booking our profits and walking away. Thank you very much. You could have bought CLF at $2, $3 or $5 just as recently as last month and still have made impressive percentage gains, but this bull move seems far from over.

CLF is trading above the rising, 50-day and 200-day moving averages. Prices could be stretched on the upside compared to the 200-day line, like they were in early August, but our other indicators are in fine shape. The daily On-Balance-Volume (OBV) line has been trending all year, and confirms the positive price trend with signs of aggressive buying and accumulation. Momentum turned up with prices and is not diverging.

We mentioned a saucer bottom pattern at the beginning of this article, and here it is in this three-year weekly chart, below. This is no small pattern, as the bottom is at least two years in the making. Prices are above the rising, 40-week moving average line, which is bullish, and you can see two buying opportunities as CLF dipped to test the average line in May and October. Now look at the volume pattern.

In the left part of the saucer in 2015 the volume is relatively light, and in the right half of the saucer the volume is very heavy -- just what we want to see. The weekly OBV line did correct in August, September and October but is pointed up again. The trend-following Moving Average Convergence Divergence (MACD) oscillator turned bullish in May and just generated a fresh go-long signal. $14 is our next major upside price target for CLF. Risk a close below $7.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
TAGS: Investing | U.S. Equity | Basic Materials | Markets | Stocks

More from Basic Materials

Commercial Metals Is Poised for an Upside Breakout

Bruce Kamich
Dec 28, 2021 11:45 AM EST

Let's review the charts and indicators.

Martin Marietta Looked Bullish Even Before Getting an Upgrade

Bruce Kamich
Dec 17, 2021 10:20 AM EST

Here's our updated trading strategy and price targets.

Masco Surges -- but Is It a Buy?

Bruce Kamich
Nov 16, 2021 1:39 PM EST

Traders and investors looking for a building products name to add to their portfolio could go long MAS around this level.

History Says Enthusiasm About Infrastructure Spending Should Be Tempered

Bret Jensen
Nov 10, 2021 8:30 AM EST

It could be a few years before construction projects that receive money from the latest federal infrastructure infusion get off the ground.

Dividend Investors Listen Up: We Are Living in a Materials World

Bob Ciura
Oct 29, 2021 11:00 AM EDT

Give your portfolio some credit and see which of these materials companies gets your interest: BHP Group, Dow Inc. or LyondellBasell.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 07:59 PM EDT PAUL PRICE

    Very good quarterly numbers from Bassett Furniture (BSET)

    Bassett Furniture (BSET) blew right through analys...
  • 04:41 PM EDT PAUL PRICE

    First Half Results - Putrid Second Half Results - Likely to Be Much Better

    It's great that we're done with June. 2022 marked...
  • 04:51 PM EDT PAUL PRICE

    We Should Be in for Better Starting Soon

    Window dressing Thursday, the last day of the...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login