China demand slowdown hurts Noranda Aluminium, stock plunges

Noranda Aluminum Holding Corporation was one of the biggest decliners in trade yesterday September 23. The stock plummeted by close to 14 percent on the back of 3 times the daily average volumes which is a bearish signal. The sell off on the back of above average volumes is a clear indication of the shift of momentum towards the sell side. The sell off in the stock was on the back of the sell off seen in the commodity markets as the company shares a direct relationship with aluminium prices and therefore any weakness in the commodity markets is seen as a huge negative for the stock in the near term. Traders on the street believe the stock could head to levels of $1.80 in the near term. The total market capitalization for the company is at $22.82 million.

Noranda Aluminum Holding has been in a strong downtrend over the past few weeks in line with the overall weakness seen in the broader markets. The stock has broken below all important daily moving averages which is being seen as a huge negative. The momentum indicators for the stock have given a fresh sell signal which is indicative of the fact that bears are in total control. Analysts on the street have a consensus hold rating on the stock and many believe every dip in the stock should be used as a buying opportunity. The median price target for the stock is at $2.50 which is seen as a positive.

Noranda Aluminum Holding Corporation is a producer of primary aluminium and rolled aluminium coils. The company sells its primary aluminium shipments in the form of products, such as billet, rod and foundry. It has two businesses: upstream business and downstream business. Its downstream business consists of around four rolling mill facilities.