Aluminum (or Aluminium) For the Win!
- Posted by Greg Harmon
- on March 12th, 2014
I have been all over Aluminum stocks (or Aluminium stocks for you folks across the pond and Jon Boorman) since October last year. They have been pretty good to me and our clients and now there is an opportunity for you to join us as well. I have positions in both Alcoa, $AA, and Century Aluminum, $CENX, and am now looking at a third company, Noranda Aluminum, $NOR. All are setting up for moves higher. Take a look at their charts.
Alcoa is grinding into an ascending triangle with a top at 12.30. A break over that carries a Measured Move higher to 14.60. Not chump change.
Century Aluminum looks almost exactly the same. Its ascending triangle has a top at 12.60 and a target higher to 15.45.
Noranda Aluminum has been a bit of a high flyer in the bunch. It has been extended from the Simple Moving Averages (SMA) and overbought on the RSI. But a secondary offering Wednesday took care of that. It pulled back to the 20 day SMA and rising trend support off over 11%. that was also a 38.2% pullback of the last leg higher. A hold here and turn back with the group could make this the most attractive of the three for the next few weeks. I started a position in this name just before the close.
What makes these stocks so attractive though is that they have all been beaten up badly for a long time and are just now starting to reverse out of long bases. Don’t look for the first move to be the last one in these names.
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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