Mish’s Daily: Century Aluminum Pops Up as Bullish
Written by Michele ‘Mish’ Schneider
The week starts out exactly how we expect.
The SPY and indices stuck in the trading range within a trading range.
The latest economic data weak, hence causing buyers to return to the market figuring bad news is good news.
Four of the 6 Economic Modern Family members in a bullish phase with Transportation in the lead.
High Yield bonds holding recent gains.
EVs still in vogue with Tesla (TSLA) in the lead while Rivian (RIVN) strengthens ahead of earnings this week.
Which brings us to our Complete Trader Scanner and Aluminum.
Given the recent sell-off in aluminum, copper and steel, industrial metals remain overall outperformers. Not only is this a good sign for the economy, but also speaks to continuing raw material shortages and the ever-growing mass adoption of electric vehicles.
Note the columns in the MarketGauge tracker.
Considering the range of the indices and our bullish bias in commodities, one of our scans is for Bullish Continuation Stocks.
I particularly like to see stocks that are in a bullish phase, plus positive in our Triple Play indicator.
And we want to see good momentum in our Real Motion Indicator.
For Century Aluminum (CENX) we like that it is a material (sector we are bullish). Furthermore, it crossed the 10-daily moving average for one day as of last Friday.
Additionally, CENX is trading above its 6-month calendar range (seasonal) and had a positive stack in its floor trader pivots.
On the Daily chart, a move and close over 11.50 looks like a good follow-through buy opportunity.
We see this stock potentially rising by about 40% if it breaks out. And, in case you missed it, please read our Crypto Pulse Update, U.S. Regulators are Coming Down Hard on Crypto. Yet, as Holden points out, Crypto Charts Have Mixed Signals.
For more detailed trading information about our blended models, tools, and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.
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S&P 500 (SPY) 390 support with 405 closest resistance
Russell 2000 (IWM) MA support around 184. 190 has to clear
Dow (DIA) 326 support 335 resistance
Nasdaq (QQQ) 284 big support 300 resistance
Regional banks (KRE) 65.00 resistance 61 support
Semiconductors (SMH) 228 support 240 pivotal 248 key resistance
Transportation (IYT) 235 resistance as best Mod Fam performer and 228 support
Biotechnology (IBB) 125-130 new range
Retail (XRT) 66-68 huge area to hold if the market still has legs