Century Aluminum could reach new annual highs.

The company’s fundamentals are still strong. Sales are up 27.8% for this year. Analysts from Thomson Reuters consensus have revised upward their EPS and sales estimates for the two coming fiscal years. Improving margins for the upcoming years are anticipated, and could lead to an EPS at USD 1.02 for 2014 compared to USD -0.45 in 2013. The financial situation is healthy, and the valuation ratios are back attractive levels, as show the P/E ratio at 11.7x for 2015 and EV/EBITDA ratio at 5.98x for the same period.

From a technical viewpoint, the security is trading in a bullish trend in all time scales. Prices recently crossed over the bullish channel, which can be interpreted as a buy signal. Moreover, increasing moving averages let think there will be no reversal in the coming trading sessions.

Therefore, taking into account the strong fundamentals and technical patterns, it seems opportune to take a long position on the current prices in order to benefit from a possible acceleration. The first target will be the USD 24.7 short term resistance. A breakout of this level will be a new bullish signal for higher target price. A stop loss will be placed at USD 20.8 short term, threshold that would invalidate this trading strategy.