Cleveland-Cliffs Stock Poised for a Comeback

Core Viewpoint - Cleveland-Cliffs Inc (NYSE:CLF) is experiencing a recovery in its stock price after a significant decline, despite a downgrade from KeyBanc, indicating potential for further gains due to technical indicators and market conditions [1][2]. Group 1: Stock Performance - CLF's stock rose by 2.6% to $12.35, recovering from a previous drop of 9.3% [1]. - The stock is approaching a historically bullish trendline, suggesting a potential rebound [1]. Group 2: Technical Indicators - The stock is currently within 0.75 of the 126-day moving average's 20-day average true range (ATR), having remained above this level 80% of the time in the past two weeks and 80% of the last 42 trading sessions [2]. - Historical data shows that similar signals have led to a 75% chance of the stock being higher one month later, with an average gain of 4.3% [2]. Group 3: Market Sentiment - A short squeeze may provide additional support, with short interest at 13.1% of the stock's available float, equating to nearly three days of buying power [4]. - The 14-day relative strength index (RSI) of 28.1 indicates that the stock is in "oversold" territory, which often precedes a short-term bounce [4].