Today, we explore the weekly setups of two companies, unrelated to each other in industry but both exhibiting similar upside chart potential. One is CENX and the other is IBKR.
CENX has gone through a long multi year period of basing after the steep sell off almost two years ago. Recent activity is encouraging as the stock begins to ascend out of this base in a series of higher high trades. The recent high near $10.7 has been taken out and once the price breaks clear, we expect a move towards $20. The SCTR index line has moved up into the mid 90’s area even as the price has advanced indicating persistent buying. A PNF break of $11 is further support for a continued rally.
IBKR exhibits a similarly bullish setup with a projected break of a large triangle to the upside. While symmetrical triangles can break either way, the recent new high in the PNF chart for this issue tilts our bias to the long side breakout. IBKR does not have the high trending SCTR of CENX, which is preferable for a prolonged move. Nevertheless, we target a new high of $46 once the triangle breaks and the stop point is the recent low at just below $36