Tuesday, 28 March 2017

CENX - bullish follow through

Whilst the main market managed moderate gains, there was more significant strength in Century Aluminium (CENX), which settled +1.9% at $12.41. Near/mid term outlook is bullish, with first soft target of the 50dma around the $14.00 threshold. A break above the Feb' high of $16.53 appears due.

CENX, daily

CENX, monthly


Like many industrial/material stocks yesterday, CENX saw a rather powerful bullish engulfing candle. This was where the Friday low was taken out, but the stock swung far higher.. closing well above last Friday's high.

Price action since Sept'2016 has been exceptionally bullish. We've now seen 3 higher lows, and 3 higher highs.

Seen on the giant monthly cycle, we can see grander resistance at the $20 and $30 thresholds. Even if CENX were to reach $30/40, that would still be less than half of its commodity bubble high of $80.52.

I am very bullish for CENX, along with AA, X, and a fair few other names. All could be termed 'Trump trades', on the outlook of a growing US economy... with some element of commodity inflation.