CLF closes within previous day's range
Cleveland-Cliffs Inc. (CLF) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CLF ended the week 14.15% higher at 4.68 after edging lower $0.03 (-0.64%) today, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CLF as at May 22, 2020):
Friday's trading range has been $0.31 (6.58%), that's slightly below the last trading month's daily average range of $0.33. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CLF.
Regardless of a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on May 11th, CLF lost -6.40% on the following trading day.
Prices are trading close to the key technical resistance level at 4.82 (R1).
Cleveland-Cliffs shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 4.85 where further buy stops might get triggered. Further buying could move prices higher should the market test April's nearby high at 4.90.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for Cleveland-Cliffs. Out of 683 times, CLF closed lower 51.83% of the time on the next trading day after the market condition occurred.