CLF looks like ready to break one way or the other. It is good for at least 15%-20% move from today’s market price. In case of more downside, the target would be 40-45$ in two weeks. Stop at 54$. If we break above 54$, then there is a good chance CLF is going to 60-65$ with the rest of the market. So, in general, no matter which way you chose, metal stocks are offering really good reward.
Posts Tagged ‘sell resistance’
Cliffs Natural Resources (CLF)
June 3rd, 2010
Market looks tired here. Pullback to 1140 is comming.
March 19th, 2010Stock market is looking tired here. I am seeing that some sectors are ready for a pullback (mining, financils, tech).
Now is a good place to establish shorts at 1160 with the stop at 1163. Target 1150 by Monday.
The index might reverse down to 1140-1130 during the next week. That would be a nice area to establish long positions. A drop below 1130 would make me very cautious if I were holding longs.
Shorted GS – Target 135 by April.
March 1st, 2010Today I got the confirmation, that the market has stalled at current levels. The chances that we are going higher from here are limited. Strong resistance at 1113-1115 area (possible double top in the making).
From here we might trade sideways for awhile in a tight range of 30 pts. or go lower to my target of 1030. Only time will tell, which will happen, but one thing is for sure, longs is not the place to be at te moment.
I have desided to try my luck with GS. The stock has been under a severe pressure lately, there is ton of resistance above 160$, and should the next drop in the stock market occur, it will be one of the biggest losers.
Again, I am playing this with options. Bought some 150 April Puts @ 3.70. Looking for 135 by April Option Expiration. Stop is above 161$.
This trade is tricky, though, as we can fast to 150-148 are then reverse to break 160 resistance, so I will be monitoring this trade closely.
Stopped out
January 5th, 2009Stopped out of the trade. Lost 5 points. Well, a good lesson to learn here – never enter a trade before the entry point is confirmed. In this case, I THOUGH there will be a rising wedge. In fact it was a clear double bottom.
Plan for the rest of the day is to wait for a pullback and just follow the trend and the trend is UP.
Edit: Teh market is really straggling to break above Friday’s hight, no follow through, it looks very undecideful right now and it easy to get shaken out. In fact the most profitable strategy today was – buy support, sell resistance.
