Kaiser Aluminum Corporation : Good timing to aim a technical rebound
By Pierre Gilles de la Londe
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$69.97 | $0 | $68.6 | -100% |
Besides, EV/Sales is low with a ratio at 1.08 for this year.
Moreover sales are expected to increase about 4% in 2014, from USD 1.3 billion to USD 1.35 billion.
Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the current area which correspond to the trend line support should stop this movement and allow a technical rebound towards USD 73.7 (weekly data). Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.
The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Kaiser Aluminum with a good timing. Investors might place a stop loss order at USD 68.6 in order to avoid important losses.