Cliffs Natural Resources Approaching its 50 Day

Published on Tuesday, 03 January 2012 19:56 Written by Christopher Lynn

New York, January 3rd (TradersHuddle.com) - Shares of Cliffs Natural Resources Inc. (NYSE:CLF) closed the trading session at $65.85 near its 50 day moving average currently set at $66.36. Cliffs' price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

Cliffs Natural Resources Inc. (NYSE:CLF) is a diversified mining and natural resources company. The Company mines for iron ore and coal in locations across North America, South America, and Australia.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $61.35 and calculated resistance at $66.21. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Cliffs Natural Resources shares.

Traders should evaluate their trade if they want to establish a position on Cliffs Natural Resources given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.