We looked at the charts of steel-maker Cleveland-Cliffs (CLF) on Sept. 9 and wrote that "Traders should be prepared for a possible dip toward the rising 200-day moving average line. If this correction occurs you should treat it as a buying opportunity for longer-term gains to the $36 area."
The shares tested the rising 200-day line at the end of September and earlier this month so traders got the opportunity to buy CLF.
Let's see how things are progressing.
In the daily bar chart of CLF, below, we can see that the shares followed our September "script" and tested the rising 200-day moving average line. Traders got a buying opportunity at a good price and technical juncture. Prices are turning upwards again and we could soon see a test of the 50-day average line.
The On-Balance-Volume (OBV) line has held steady since late June and I look forward to renewed strength. The Moving Average Convergence Divergence (MACD) oscillator just crossed to the upside for a cover shorts buy signal.