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.
Get my book, Trading Options: Using Technical Analysis to Design Winning Options Trades from Amazon.
Dragonfly Capital Views Book Launch Celebration
For a Limited the Opportunity to join the Dragonfly Capital Views Premium Membership on an Annual basis is available for only $618.
This special Fibonacci rate (1000 divided by Φ) will be gone soon. Don’t miss this opportunity to join or upgrade! Sign up here. As part of this celebration, the first 25 annual subscriptions will also get the book*.
*book will be sent after payment is processed. It will also require you to send me your address for delivery.
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through February 2014 Expiry and sign up here for the free 7 day trial before you pay.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Hillary Has More Words for Drugmakers and Investors Flee
- Sitting On the Edge of a Move in Brinker
- Premium Earnings 8-24-16: HP and PVH
- A Quick Short Term Outlook for Emerging Markets
- Ball Bearings for Your Portfolio – Timken
- Premium Earnings 8-23-16: Express
- Treasuries, Yellen and Jackson Hole
- Graco Ready to Deliver a New Uptrend
- Top Trade Ideas for the Week August 22, 2016: Bonus Idea
- Top Trade Ideas for the Week of August 22, 2016: The Rest