Morgan Stanley: No Room Left in Steel Rally, Cleveland-Cliffs Downgraded

Morgan Stanley has downgraded Cleveland-Cliffs shares, stating that there is limited upside potential for investors following the current rally in the steel sector. The bank believes that the recent increase in steel prices has been largely priced in and adopts a cautious stance due to a lack of near-term catalysts. Analysts highlight that weakness in key demand sectors, particularly automotive and construction, could negatively impact steel demand. Additionally, rising production costs and potential oversupply concerns may pressure profit margins. While lowering its price target for Cleveland-Cliffs, Morgan Stanley also points to similar risks for other players in the sector. The bank advises investors to be selective with steel stocks and notes that opening new positions at current levels could be risky. This is not investment advice.

📊 MS — Piyasa Yorumu

▼ down · 65%

Morgan Stanley's warning that the steel rally has no room left and its downgrade of Cleveland-Cliffs can be interpreted as a negative signal for the sector. Although MS shares rose 1.9% in the last 24 hours, the RSI at 51 in neutral territory and the MACD having just crossed below its signal line indicate weakening short-term momentum. The price trading just below the 20-day moving average (224.52) suggests this level may act as resistance. The negative sector sentiment created by the news, combined with weakness in technical indicators, points to a likely downward trend over the next 1-3 days.

RSI 14

51.3

MACD

2.01

24h Δ

1.89%

📊 CLF — Piyasa Yorumu

▼ down · 75%

Morgan Stanley's warning that the steel rally has no room left and its downgrade of Cleveland-Cliffs are creating negative pressure on the stock. Technical indicators support this view; although the RSI at 34 is approaching oversold territory, the MACD remains below the signal line and in negative territory. The price is trading below both the 20-day and 50-day moving averages and has lost over 10% in the last 24 hours. Selling pressure is likely to continue in the short term, though some buying on the dip may occur due to oversold conditions.

RSI 14

34.0

MACD

-0.26

24h Δ

-10.08%

Canlı Grafikler