Century Aluminum is trading in a bullish trend and several arguments are in favor of the continuation of this tendency.

The aluminum producer shows strong fundamentals. The company reported recently its third quarter results that bet Wall Street forecasts. Sales are up + 29.4% for this year and shares’ prices have nearly tripled in the last 12 months. The P/E ratio should significantly decrease from 29x to 12.9x. Also, analysts from Thomson Reuters consensus have revised largely upward their EPS estimates to USD 1.01 this year against -0.45 in 2013.

From a technical viewpoint, the security is trading in a bullish trend in the short, middle and long term. Increasing moving averages let think there will be no reversal in the coming trading sessions. This growth should help to cross soon the USD 29.3 long term resistance.

Thus, investors can take a long position in Century Aluminum in case of breakout of the resistance currently tested. The target price will be set at USD 33.5 which represents a great gain potential. On the other hand, a stop loss will be set under the USD 24.6 short term support.