NALCO

National aluminum has held out better than the sector recently, after a long period of lagging behind. Prices surpass the wave 1 high pushing the daily momentum to buy mode. What looks like wave 3 of 3 is subdividing into smaller waves. The subdivisions indicate the potential for an extension on the upside. The 1st hurdle will be breaking out of the upper end of the channel near 54.7 above which wave 3 and wave 1 would be equal to each other at 57.28. However given the extensions, if wave 3 extends towards 161.8% of wave 1 then we would end up at 65.80. The immediate support is at the 20-day moving average at 46.93