Here we have the usual then, Oct. 2014, and now charts, two years apart, but on a different scale;
The Dogs of the Dow is a great newsletter that covers more than just the Dow. So in the latest edition it shows that CLF is up 391.5% from the start of the year, so not from the low. Two other stocks are featured with about the same percentage gain, US Steel (X) and AK Steel (AKS) with resp. a 427% and 403% gain. but neither have the same EW “flat” structure that CLF does have. Vale and Teck have similar structures and that allows you to predict within somewhat vague parameters what will happen next, (see our blogs for all three).
Because the flat is a corrective structure it follows that once it is complete, the stock should be going up again. The only remaining question is how low is low enough. The only way to find out is to examine the last wave down meticulously, but all too often that does not work in a determinative way so you have to guess on a value below the A wave and above zero. In this case roughly between $5 and 0 or $2.50 on average. Bubbles tend to retrace all the way to below their starting point!, here pretty close to zero. Suppose you bought at the high end, at $5, you would still have a double within a year! Moreover it is an almost guaranteed result even if the actual execution can be extremely painful.
Right now we have no idea, again, what the count is for the short term chart and would therefore step aside.