Howmet Aerospace Jumps 3.48% on Technical Breakout With Heavy Volume

Howmet Aerospace (HWM) advanced 3.48% in the latest session, closing at $191.84 with above-average volume of 2.22 million shares. This bullish momentum follows a recent pullback, prompting a multi-indicator technical assessment.
Candlestick Theory
Recent price action shows notable patterns: a hammer formed on September 11 at $184.21 after testing support near $181.36, followed by a bullish engulfing candle on September 18 (closing at $191.84 after a $182.78–$192.25 range). Key resistance is established at $192.25 (September 18 high), with secondary resistance near the July 30 peak of $193.26. Support resides at $181.36 (September 11 low) and the psychological $180 level.
Moving Average Theory
The 50-day moving average ($178.50) recently crossed above the 200-day MA ($164.80), confirming a long-term bullish structure. Current price ($191.84) trades above all key MAs (50/100/200-day), signaling robust uptrend momentum. The golden cross formation remains intact, though extended separation from the 50-day MA suggests potential near-term consolidation.
MACD & KDJ Indicators
MACD shows bullish alignment: the signal line (9-period EMA of MACD) resides below the MACD line with widening histogram bars, indicating accelerating upside momentum. KDJ oscillators reflect overbought conditions (K-value: 84, D-value: 78), though no bearish divergence is evident. Combined, these suggest near-term overextension but no imminent reversal signal.
Bollinger Bands
Price rebounded from the lower band ($181) on September 11 toward the upper band ($192.25) by September 18, confirming volatility expansion. Band width increased by 15% during this ascent, validating the breakout’s strength. Sustained trading near the upper band reinforces bullish sentiment.
Volume-Price Relationship
Volume surged 40% during the September 18 rally versus the prior session, confirming buyer conviction. Notable accumulation occurred near $181–$184 support (September 10–11), with volume exceeding the 30-day average. This volume profile validates the breakout’s sustainability absent distribution signals.
Relative Strength Index (RSI)
The 14-day RSI (68) approaches overbought territory but hasn’t breached the 70 threshold. While elevated, it lacks divergence against price highs, suggesting momentum remains intact. Historically, HWM has maintained RSI levels between 60–75 during strong uptrends without immediate reversal.
Fibonacci Retracement
Using the June 27 trough ($170.23) and July 30 peak ($193.26), key Fibonacci levels emerge: 38.2% retracement at $184.25 (recently defended support) and 23.6% at $187.90. The 61.8% level ($178.80) aligns with the 200-day MA, creating a major confluence support zone. Current price action respects the 23.6% retracement as resistance-turned-support.
Confluence and Divergence Observations
Confluence exists at $181–$184 (volume-supported demand zone, 38.2% Fibonacci level, and Bollinger lower band). No significant bearish divergences are observed among oscillators, though KDJ overbought readings and RSI proximity to 70 warrant caution. The moving average golden cross and MACD momentum alignment support the primary uptrend, suggesting pullbacks to $184–$187 may present probabilistic entry opportunities.