Cleveland-Cliffs $CLF stock formed a downtrend channel breakout on November 23, 2022. The stock formed a Falling Wedge breakout on November 11, 2022. The expected move higher on the Falling Wedge breakout is between $20 and $27 as shown in the green box on the chart below.
Unusual Dark Pool Trading In Cleveland-Cliffs $CLF Stock
An unusually large dark pool trade occurred in Cleveland-Cliffs stock on November 2, 2022. The dark pool trade was valued at $5 million. We think the dark pool trade was a buy order because the stock rose following the print hitting the tape.
Great Lakes Clean Hydrogen Partnership moves forward with DOE application
The Great Lakes Clean Hydrogen Partnership, made up of Cleveland-Cliffs, Energy Harbor, GE Aerospace, Linde, and the University of Toledo, declared on November 8, 2022, that it had advanced with its Department of Energy hydrogen hub application.
“This new industry-led coalition will transition Midwest manufacturing, mobility, power generation and technology operators away from greenhouse gas emitting feedstocks and fuels, to hydrogen, a low carbon alternative solution. This action will also attract investors and new businesses who value access to low carbon hydrogen, resulting in jobs at prevailing wages, support for disadvantaged communities and a healthier environment. Today’s filing of the GLCH Concept Paper is the initial step in the DOE hydrogen hub application process,” the group stated.
Cleveland-Cliffs Reports Third-Quarter 2022 Results
On October 25, 2022, Cleveland-Cliffs reported a big EPS miss and a smaller revenue miss. Cleveland-Cliffs reported Q3 EPS of 29c versus the consensus estimate of 55c. The company reported Q3 revenue of $5.65B versus the consensus estimate of $5.81B.
Lourenco Goncalves, Cliffs’ chairman, president, and CEO said: “Our third quarter results were affected by the delayed inventory impact of higher input costs and maintenance activities from prior periods. Now, that all major projects have been concluded and production levels are back to normal, we expect costs to decline meaningfully, into Q4 and further into 2023.”
This EPS and revenue miss caused $CLF stock to sell-off which was quickly met with an institutional investor buying over dark pools as explained above.