Cliff Natural Resources has fallen on hard times.
The once over $100 stock closed Friday at 1.81.
CLF has been in the grip of a bear market characterized by peaks below the upper weekly cycle band and troughs below the lower weekly cycle band. However there is a bullish divergence developing on the weekly TSI along with the Weekly TSI delivering a bullish zero line crossover. CLF is due for a yearly cycle low and appears to have formed one in January.
CLF has emerged out of the January low and managed to close above the upper daily cycle band. The close above the upper daily cycle band indicates that an intermediate low has been left behind. A peak on day 25 assures us of a right translated cycle formation.
A swing high has formed and CLF has begun its decline into its daily cycle low. With CLF being late in its timing band for daily cycle low, a swing low could signal a new daily cycle. If CLF can print a daily cycle low above the lower daily cycle band then CLF will have begun a new daily uptrend.
This gets a bit more interesting with this article that one of my subscribers, Drew, sent me:
Industrial metals including copper maybe on the move upward. I noticed this tidbit of information.
“A U.S.-based company that sources industrial commodities just announced that a $200 million order (iron ore), over a 24-month period was placed with its wholly owned subsidiary Capital Resources Management Corporation.
The order was placed by a China based trading company. China accounts for the purchase of nearly two-thirds of the world’s seaborne iron ore supply.
Per the purchase order, CD International will source up to 200,000 tons of iron ore per month for a period of 24 months in a total of up to 4.8 million tons. CDII has already begun sourcing suppliers in both North and South America to execute the transaction for their buyer.
Recently we have read that Capital Resource Management Corp has also received a purchase order valued at approximately $350 million for 240,000 tons of copper concentrate to also be fulfilled over 24 months beginning this year.”
You can find the whole article here.
The cycle alignment is setting up for a potential low risk trade once a daily swing low forms with the stop being the swing low.
CLF is in the Industrial Metals Sector. In a special report for subscribers, I break down the Industrial Metals Sector on the the daily, weekly, yearly and multi year cycles which will help to put CLF in perspective with the Industrial Metals Sector.
The Special Industrial Metals Report can be found at Likesmoney Subscription Services
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