CLF had an amazing bullish gap this week. It appears this gap is ‘trapping’ many short traders (since there were so many bearish candles recently).
Also, CLF bounced off of the 100/200 simple moving averages on the daily chart after making a healthy .618 retracement of the prior bullish wave.
After being up some 40%, I do expect some slight selling into the gap, around $3.80, but at least for the short term, I would keep a bullish eye on CLF after this move.
