Century Aluminum Nearing Breakout ($CENX)

Shares of aluminum maker Century Aluminum Co., ($CENX) have printed a double bottom pattern on the hourly chart coupled with bullish divergence seen in both the OBV and RSI indicators. Peer in the metals industry, US Steel (X), is leading the way higher.. Shares of CENX trade at a very low P/Sales multiple, a low P/Book, and recently beat its EPS expectations (last week) by posting a narrower than expected loss.

See the technical chart below. Support is at 6.60 and a break above the Resistance-Line should see price rise to about $8.50 to test the mid-July highs.

One can purchase shares alone, or sell the December 8 calls for around 0.70, which would give the call-writer a total gain of +24.3% if shares of CENX are trading at or above $8 by December's expiration.
Posted to Dr. Stoxx Options Letter on Aug 04, 2016 — 12:08 PM
Comments ({[comments.length]})
Sort By:
Loading Comments
No comments. Break the ice and be the first!
Error loading comments Click here to retry
No comments found matching this filter
  • {[comment.author.username]} — Marketfy Staff — Maven — Member
Want to add a comment? Take me to the new comment box!

Reviews Average Rating          

I do not leave reviews that often, but I have never seen returns like this before in my account. His work is amazing and recommend it to anyone who's serious about investing.
See All Reviews →