CENX (Century Aluminum Company) will trigger a long entry at 5.72. Suggested stops using a 3:1 R/R which provides a max. stop below 5.00. Regarding position sizing, there is at least one other aluminum stock that will likely be added as a Long Trade Idea soon. Therefore, for those interested in exposure to commodities or commodity producers, particularly aluminum producers, diversification among several stocks would help to mitigate risk.
Note: the following charts were created shortly before the market opened today & as such, reflect Friday’s closing values. While one could certainly take a starter long position on a break above the downtrend line (I just did), which occurred on an opening gap today, I chose any print of 5.72 as the official entry as that is just above a horizontal resistance area that lies just above the downtrend line. Waiting for a move above that resistance level would help minimize the odds of a false breakout.