Below is a monthly/weekly chart of Cleveland-Cliffs Inc. (CLF).
Each morning in pre-market preparation, we analyze the gaps of the major market indexes to develop a trading bias for the day. Additionally, we monitor all open positions to see what trade adjustments might be necessary and/or profit taking.
Then we analyze stocks “in the news,” companies announcing earnings, and other gapping stocks to see what trading opportunities might set up for day and swing trades.
Today CLF hit our gap radar screen since it is what we call a Professional Gap (i.e., possibly igniting a new move). CLF is gapping pre-market to the $9.30 area on earnings in a weak market showing great relative strength.
This is a gap breakout on the weekly chart (bottom chart) from a multi-month consolidation with a price void on the monthly chart (top chart).
We will be monitoring today in the Master Trader Green Room for possible long stock and option strategies, and will advise accordingly.
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Greg Capra
Managing Director of Master Trader
Trading the Pristine Method — Origin and End
Dan Gibby
Chief Options Strategist
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