CLF coming from a historical level

First a quick descriptions thanks to the trading view information on the ticker:

Cleveland-Cliffs, Inc. is an iron ore mining company, which supplies iron ore pellets to the North American steel industry from mines and pellet plants located in Michigan and Minnesota. The company was founded in 1847 and is headquartered in Cleveland, OH.

Sector: Non-Energy Minerals
Industry: Steel


We know Industrial companies have been performing better than tech companies in the last weeks; if you don't agree with this, check the Nasdaq or stocks like AAPL / AMZN / NETFLIX compared to stocks like CAT / X / AA.

Let´s check the technical view on CLF

-The price is above a key support/resistance zone coming from 2005
-Currently, we can see an accumulation process going on (yellow lines), also known as a corrective structure
-If we have a clear breakout, we expect a continuation movement towards the next resistance zone, which provides a good risk-reward ratio.

Now we will show you the exact way we will take this setup:


The risk we are taking on this setup is 1% of our capital on the stop loss. Please take into consideration that this is "another trade," so be open to take profits or stop loss; remember that your edge trading this type of structures is after you execute 100 great trades with an average risk reward above 1.5