Steel companies saw a surge in buying on Monday following the announcement of new tariffs by President Trump. President Trump used similar measures during his first term to protect domestic steel manufacturing companies.
The President announced 25% tariff on incoming steel and aluminum, a move that may increase prices on products that use these raw materials like soda cans and automobiles.
Shares of Cleveland Cliffs (CLF) and other steel companies rallied as much as 16% as investors traded these stocks on unusually high volume.
In CLF’s case, the stocks traded to round-numbered resistance at $12 before retreating through the say.
Cleveland Cliffs stock had been trading at $10 for the last month. That price levels is one of the more reliable prices for psychological support and resistance, helping to fuel today’s rall in CLF stock.
Backing away from today’s price action, CLF stock has been trading in a short- and long-term bear market trend since mid-2024.
The stock’s 50- and 200-day moving averages are trading in a bearish trend and the stock remains well below its long-term 20-month moving average.
This technical picture remains bleak for Cleveland Cliffs’ stock.
Investors should expect to see continued pressure from $12 as resistance followed by a return to the $100 price level.
