I did a technical analysis on CLF chart to get back into the stock.
The fundamentals of CLF remain strong given its healthy balance sheet and demand for iron ore.
The suggested buy entry is based on Support line as shown by the 3 circles and the Fibonacci retracement lines of 38% and 62%.
Take a look at the chart for yourself.
CLF might dip to $72 based on technicals. There is a slight head and shoulders pattern here, with the neck to top range of $10. It may be possible that technical traders will take this thing down to $72.
I will be a buyer on that dip as CLF has shown remarkable fundamentals with its ability to produce more iron ores going forward.
Cliffs Resources should continue to perform well into the year as Iron Ore shortage continues into 2013.
China will be stocking up Iron and Coal again before the Lunar New Year.
Technicals show support at $78.
Long term target is $170.
DCF valuation will be provided soon.
I am watching to buy CLF at $57.
The stock is a risk play on the economic recovery.
Target: $100 by 2011.
Should the price continue to dip further, I will look at $54 and finally $50.
Happy investing.
