Cleveland-Cliffs $CLF Price Increase On Steel Triggers Dark Pool, Bullish Option Flow

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Cleveland-Cliffs $CLF stock moved higher on August 24, 2022, showing excellent relative strength, after the company announced it was increasing its prices.

Cleveland-Cliffs Announces Price Increase for Carbon Steel Products

On August 24, 2022, Cleveland-Cliffs Inc. (NYSE: CLF) announced that it is increasing current spot market base prices for all carbon steel hot rolled, cold rolled, and coated steel products by a minimum of $75 per ton, effective immediately with new orders in North America.

Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs also is the largest manufacturer of iron ore pellets in North America. The company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. We are the largest steel supplier to the automotive industry in North America and serve a diverse range of other markets due to our comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 27,000 people across its operations in the United States and Canada.

Cleveland-Cliffs price target lowered to $37 from $39 at B. Riley

On July 26, 2022, B. Riley analyst Lucas Pipes lowered the firm’s price target on Cleveland-Cliffs to $37 from $39 and kept a Buy rating on the shares. Subdued domestic auto production has contributed to suboptimal results for Cleveland-Cliffs this year, Pipes tells investors in a research note. However, the analyst believes auto output has been at “unsustainably low levels” and that normalization would disproportionately benefit the company with higher volumes, higher prices, and lower costs through fixed cost leverage.

Bullish Option Flow Detected In $CLF

Clf Option Flow

Make sure to review this lesson on option flow so that you understand the image above.

In particular, the January 20, 2023, $21 call option had a significant surge in open interest over the last five trading days from August 18, 2022, to August 24, 2022.

Clf Jan Call Option

Dark Pool Activity Detected In $CLF Stock

Guerilla Stock Trading has detected dark pool activity in $CLF stock over the last month. The dark pool trades tell us that institutional investors could have known about the price increase from mid to end of July 2022. Deep-pocketed institutional investors wanted to keep the transactions private to front-run the news of Cleveland-Cliffs increasing its prices on steel products. That’s just speculation and would be prohibited insider trading, so we want to clarify that the dark pool trades are only suspicious, in our opinion, and do not imply guilt to anyone. It could be just a coincidence too. The way that the price of $CLF stock responded to the dark pool trades by rising after the prints were made public suggests that the dark pool orders were buy orders.

Clf Dark Pool

Make sure to review this lesson on dark pool trading so that you understand the chart above.

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📈 Cleveland-Cliffs $CLF Chart Technical Analysis

Cleveland-Cliffs $CLF is moving into a Symmetrical Triangle pattern. The stock is in a technical downtrend rating. Short-term indicators suggest a trend reversal is possible on a breakout above $21 per share, but long-term indicators support a continuation of the downtrend.

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