By Jeff Pierce
AA and CENX showed up on my momentum scans today not because they had big moves, but because the overall strength of their trend is so strong. It’s generally a good thing for the general markets when this sector is doing well and we can often expect the markets to continue to rise. Trends don’t turn on a dime and while in the short term they may be a little overbought these trends can go on for far longer then we can imagine.
AA – with a weekly RSI of 88 this is definitely overheated. A pullback in the $13-14 range should be the perfect area to add to this if you were wanting to buy this stock.
CENX – same deal as above, but look for a pullback to the $14-14.50 range.
Weekly charts of Dow Jones and Aluminum stocks
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