Following our most recent report (Feb. 20, 2010 – $53.60 U.S.), Cliffs Natural Resources Inc. continued to rise above a long-term rising trend-line (dotted line) and reached a high of $76.17 (A) for a 42-per-cent appreciation from our previous report. The stock then pulled back toward its rising 40-week moving average for a much needed pause or correction (B). The stock now appears ready to resume the uptrend (C). Only a decline below $45-$46 would reverse the current long-term upside potential.

Point & Figure measurements provide targets of $79 and $89 (35-per-cent and 52-per-cent appreciation potentials from current levels). The large area of accumulation (dashed lines) supports higher targets.

Ron Meisels is a contributor to the www.NA-marketletter.com website. Monica Rizk is the senior technical analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.

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