Alcoa broke out of recent consolidation at 52-week highs. The stock is higher in pre-market trading, as well, signaling continuation. Other stocks in the group also look bullish. Consider these names in the short term.
We originally started this trade just before the hurricane season saw institutional money flowing into these names.
Alcoa technicals look bullish, with SOTEMA supporting price as the current breakout unfolded. The measured move is approximately +2.50. Volume is above average on the breakout.
Alcoa and the ARNC Spin-off
Alcoa Inc. completed its separation into two separate companies. The original Alcoa Inc (AA) became Arconic Inc. (ARNC) and then Arconic Inc. (ARNC) spun off the new Alcoa Corporation (AA).
ARNC technicals suggest an imminent breakout. First target 28.25 (+/-). RSI is heading higher, while volume is beginning to suggest accumulation.
Century Aluminum Company, together with its subsidiaries, produces primary aluminum in the United States and Iceland. It produces standard grade and value-added primary aluminum products; and carbon products, such as anodes and cathodes.
CENX technicals show a flag consolidation. A break higher will likely ensue in the short term, with Alcoa leading the way. VBP support is in line with current price levels, so the downside is limited.
Side-Note: As the markets near a short-term cycle peak, we will be taking smaller initial positions and reducing the number of open longs.
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