Home
News
- CLF stock price falls after forming a double-top pattern, dropping more than 7% in over a week.
- Cleveland-Cliffs may witness volatility due to hyperactive metal markets.
Cleveland-Cliffs Inc. operates in mining and production of steel, and with precious metal climbing up the ladders, CLF stock price steps back. In the past few days, precious metal markets for Silver and Gold saw an uptrend, and might have sent shockwaves across the steel producing company. The NYSE American Steel Index has fallen by nearly 10% in over a month.
Metals and Cleveland-Cliffs
The metal market has been highly volatile and marked multiple highs and lows over the week. Silver Futures rose and marked a 52-week high post rally. The gold future follows a similar uptrend as formed in the beginning of 2022, aiming for a $2050 price level. The bullish market for both metals countered Cleveland-Cliffs raising the price of hot rolled steel.
Cleveland-Cliffs recently announced increasing current spot market base prices for all carbon hot rolled, cold rolled and coated steel products by about $100 per net ton. The new updated prices for hot rolled steel amounts to $1,300 per net ton. The company also increased prices for plate products earlier in March. When a bullish metal market met with the revised prices, it sent Cleveland-Cliffs down the hill, making CLF stock price drop.
CFL Stock Price Analysis
CLF stock price forms a double top pattern and turns extremely bearish. The price falls below the $17 range and looks for support near $16.35. The bears in the market establish a downtrend. The price dropped for four trading sessions and over 25.46% in a month. The trading volume shows active selling to occur, and pushing the price further down. The CLF stock price faced rejection at $18.40 as it acted as a strong resistance.
CLF stock price falls as the NYSE American Steel Index drops. The RSI slips to the bottom-most range indicating overwhelmed sellers. The MACD forms a negative cross and records sellers’ interaction to match the ongoing bearish trend. The bears poured in when Cleveland-Cliffs revised prices for plate products in the beginning of March. They continued to stay and gained power after the company revised prices for rolled steel products. An Extreme bearish pattern can be traced along the timeline.
Conclusion
Cleveland-Cliffs increased prices for rolled steel products, amid the bullish metal market. The CLF stock price under the influence of bears forms a double top pattern and falls by a quarter percentage. The falling price looks for support near $16.35 and can consolidate after. The holders can look for price reversal after the support is tested.
Technical levels
Support levels: $16.35 and $14.70
Resistance levels: $20.50 and $18.40
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
