A sudden interest in base metal stocks has propelled CENX into the next area of logical resistance, albeit from almost 2 years ago at the 15 area. The surge in interest in metal stocks has elevated heretofore dull companies such as X and AKS, both steel producers as well as FCX and SCCO, both copper companies.
From today’s chart, we can more clearly see the nominal supply area at 15. If the strength of the sector continues, the next logical target is the 18 to 20 area.
The other stock which we were stalking was IBKR. The price has not moved significantly since our comment and in fact has moved lower. More importantly, accumulation statistics have not improved. While the chart pattern still exhibits a constructive shape, without evidence of accumulation, the stock may be lackluster for an indeterminate time. Accordingly, we will abandon the trade.