Kaiser Aluminum (KALU): Big base potential

Subscribers are interested in aluminum stocks. We posted on Century Aluminum (CENX) earlier today. Below we highlight the technical setup for Kaiser Aluminum (KALU).

Kaiser Aluminum (KALU): Big base breakout watch

KALU could be setting up for a breakout from a big base. The resistance zone to watch is 97 to 105.06, which are chart levels and the 61.8% retracement of the May 2021 to April 2025 downtrend. Clearing this level would suggest further upside to a measured move at 121, chart resistance near 129-130, and the 2021 peaks at 137-141. Until then, holding above or within Thursday's (8/23) high volume upside price gap from 85.82 to 80.14 is the key for maintaining a bullish posture for KALU.

KALU is also improving relative to the S&P 500 and is forming a potential late 2024 into late 2025 head and shoulders bottom. A sustained breakout above the pattern neckline would suggest an emerging leadership trend for KALU.

Chart 1: Kaiser Aluminum (KALU) (top) and relative to the S&P 500 (bottom)

Chart 2: Kaiser Aluminum (KALU): Daily chart with big upside gap