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Century Aluminum Pops Up as Bullish

Author February 27, 2023

The week is starting out exactly how we expect.

  • The SPY and indices stuck in the trading range within a trading range.
  • The latest economic data weak, hence causing buyers to return to the market, figuring bad news is good news.
  • Four of the 6 Economic Modern Family members in a bullish phase with Transportation in the lead.
  • High-yield bonds holding recent gains.
  • EVs still in vogue, with Tesla (TSLA) in the lead while Rivian (RIVN) strengthens ahead of earnings this week.

Which brings us to our Complete Trader Scanner and Aluminum.

Given the recent sell-off in aluminum, copper and steel, industrial metals remain overall outperformers. Not only is this a good sign for the economy, but also speaks to continuing raw material shortages and the ever-growing mass adoption of electric vehicles.

Note the columns in the MarketGauge tracker. 

Considering the range of the indices and our bullish bias in commodities, one of our scans is for Bullish Continuation Stocks. I particularly like to see stocks that are in a bullish phase, plus positive in our Triple Play indicator. And we want to see good momentum in our Real Motion Indicator.

For Century Aluminum (CENX), we like that it is a material (sector we are bullish). Furthermore, it crossed the 10-daily moving average for one day as of last Friday. Additionally, CENX is trading above its 6-month calendar range (seasonal) and had a positive stack in its floor trader pivots.

On the Daily chart, a move and close over 11.50 looks like a good follow-through buy opportunity. We see this stock potentially rising by about 40% if it breaks out.

And, in case you missed it, please read our Crypto Pulse Update, U.S. Regulators are Coming Down Hard on Crypto. Yet, as Holden points out, Crypto Charts Have Mixed Signals.

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ETF Summary

  • S&P 500 (SPY): 390 support with 405 closest resistance.
  • Russell 2000 (IWM): MA support around 184. 190 has to clear.
  • Dow (DIA): 326 support, 335 resistance.
  • Nasdaq (QQQ): 300 the pivotal area, 290 major support; 284 big support, 300 resistance.
  • Regional Banks (KRE): 65.00 resistance, 61 support.
  • Semiconductors (SMH): 228 support, 240 pivotal, 248 key resistance; 248 resistance, 237 then 229 support.
  • Transportation (IYT): 235 resistance as best Mod Fam performer and 228 support.
  • Biotechnology (IBB): 125-130 new range.
  • Retail (XRT): 66-68 huge area to hold if the market still has legs.

Mish Schneider

MarketGauge.com

Director of Trading Research and Education