Cleveland-Cliffs Is Nearing The End Of A Bullish Pattern: What Might The Stock See Next?

Cleveland-Cliffs Inc. CLF shares are trading higher Friday after the company reported better-than-expected third-quarter EPS and sales results. Quarterly earnings came in at $2.33 per share, beating the analyst estimate of $2.26.

Cleveland-Cliffs was up 10.3% at $23.34 at last check.

See Also: Cleveland-Cliffs: Q3 Earnings Insights

Cleveland-Cliffs Daily Chart Analysis

• Shares are nearing resistance in what technical traders call an ascending triangle pattern.
• The higher low trendline may continue to hold as support in the future for the stock. The $25 level has been an area of resistance in the past and will possibly be somewhere the stock finds resistance again in the future.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is in a period of bullish sentiment.
• Each of these moving averages may hold as a potential area of support in the future.
• The Relative Strength Index (RSI) has been pushing higher the past few days and now sits at 62. This jump in RSI now shows that the stock is seeing more buying pressure than selling pressure.

What’s Next For Cleveland-Cliffs?

Bullish traders are looking to see the stock continue to climb along the higher low trendline. Bulls are then looking to see the stock break above the resistance line and see a strong bullish move. A period of consolidation above resistance could allow the stock see even further moves in the future.

Bearish traders are looking to see the stock fade back lower and break below the higher low trendline. A break below this trendline could signal the stock is ready to change trends and start a possible long-term bearish trend.