We now look at 2 of the stocks in the aluminum sector - CENX (Century Aluminum) and AA (Alcoa).
AA is one of the 30 component stocks on the Dow Jones index. At first glance, AA looks like it is exhibiting some form of topping patterns. A probable Head and Shoulder (H&S) pattern looks to be forming on its daily chart over 3months. AA is definitely a candidate for short selling on a break below the $15.50 neckline. The Kijun line of the Ichimoko Cloud is also acting as a resistance at $16.82.
Note that any break upwards and out of the triangle would render the probable H&S pattern a failure.
CENX has a symmetrical triangle pattern on its daily chart and is definitely a short on my books if it breaks downward and touches the SELL region. My bias is towards the bearish side for the aluminum sector at this moment.
Do note that the Ichimoko clouds looks kinda thin which translates to "thin support".
The aggressive trader can choose to short CENX with a stop to cover at just above the upper range of the triangle.
AA is one of the 30 component stocks on the Dow Jones index. At first glance, AA looks like it is exhibiting some form of topping patterns. A probable Head and Shoulder (H&S) pattern looks to be forming on its daily chart over 3months. AA is definitely a candidate for short selling on a break below the $15.50 neckline. The Kijun line of the Ichimoko Cloud is also acting as a resistance at $16.82.
Note that any break upwards and out of the triangle would render the probable H&S pattern a failure.
CENX has a symmetrical triangle pattern on its daily chart and is definitely a short on my books if it breaks downward and touches the SELL region. My bias is towards the bearish side for the aluminum sector at this moment.
Do note that the Ichimoko clouds looks kinda thin which translates to "thin support".
The aggressive trader can choose to short CENX with a stop to cover at just above the upper range of the triangle.
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