Evaluating A Buy Signal: 1-28-2025 (Free Post)
This stock is about to break out on the monthly and daily chart
I created a strategy that tells me with a high probability when a stock is about to rally.
It works even better when it aligns on multiple time frames.
This is one method of idea generation. However, I must weigh it against other opportunities.
In this post, I share some of my methods of evaluating trade ideas.
I try to share one free trade idea every week. If you want more ideas like this once a week, please consider becoming a free subscriber. If you want ideas as soon as I find them almost daily, please consider becoming a premium subscriber.
This is not financial advice. Please do your own research and do what’s best for you.
Please Promise To Follow These Rules:
I will only trade options if I understand them. If you don’t understand the trade, please observe and ask me about it.
I will only risk a small amount on each trade
I will only have a reasonable amount of my portfolio in options
I will do my own due diligence before making a trade
I understand that this trade can lose money, and stocks and options are risky and unsuitable for everyone.
I will not do this trade if I get easily spooked out of trades.
Disclaimer
This is meant for educational purposes only. It’s not financial advice. Please do your own due diligence. I’m not a financial advisor and can’t give you financial advice. Read the full disclaimer here.
CLF
Cleveland Cliffs, Inc. CLF 0.00%↑ is a steel producer
CLF Monthly Chart
CLF is near the bottom of a bullish falling wedge and the momentum is slowly increasing.
The RSI and volume are about to break out which generally is followed by a price break out.
CLF Weekly Chart
CLF is near the bottom of a bullish falling wedge and the momentum is turning positive.
The RSI and volume are about to break out which generally is followed by a price break out.
CLF Daily Chart
Momentum is positive and the RSI is starting to break out.
CLF Financials Trend
The price has been trending lower, however, so has the revenue and earnings.
The equity debt has been trending lower, but the shares outstanding have been increasing.
Cons:
CLF has a declining earnings trend while outstanding shares are increasing. This means each share is diluted at the same time earnings are decreasing.
CLF has an earnings release on February 24, 2025, which could cause volatility.
CLF does not pay a dividend.
Conclusion:
CLF offers a bullish trade opportunity under the right conditions.
However, I wouldn’t consider it a strong buy-and-hold position.
I’ve searched for options trade ideas, but I haven’t found any worth the risk.
The goal of these posts isn’t to only share trade ideas but to learn how to evaluate them. Sometimes the best trade is to not trade, waiting for a better opportunity.
Every day, I evaluate stocks looking for good entries on long and short time frames for idea generation.
Some stocks are good for trading as calculated risks. While others are good for long-term buy-and-hold positions.
Please consider becoming a premium member if you want to know when I find these ideas.