CENX

Century Aluminum has been popping up more often in our list of stocks moving up from long term bases.

The weekly chart shown above clearly shows a bullish collection of events occurring. After tracing out a long one year base, CENX has managed to surpass not only the 5o period but now also the 200 period moving average.  Following the initial piercing of the 200 period average, the ensuing correction has taken prices back to test that threshold…and it appears successful.  We also note the consistently high SCTR rating throughout this pullback and the volume does support the breakout move.

For observers of classic patterns, a large cup and handle pattern is emerging which projects a target price towards the old highs near the low 20’s.  The only caveat is that the issue is thinly traded and volatility will be high.

 

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