South32 Sells Aluminum Assets to Alcoa for Up to $5.6 Billion

The news involves Alcoa acquiring a major aluminum asset, which could create short-term selling pressure on the stock. Technical indicators already show a weak outlook, with the RSI near oversold territory at 34, the MACD below the signal line, and the price trading below both the 20-day and 50-day moving averages. The 1.4% decline in the last 24 hours confirms the negative momentum. However, since the acquisition news could be positive in the long term, the downside is likely to be limited.

Aluminum prices fell 5.1% over the past 24 hours to 3,098, closing below both the 20-day and 50-day moving averages. The MACD line remains below the signal line and in negative territory, confirming short-term weakness. Although the RSI is neutral at 47, it suggests that selling pressure could persist. South32's sale of its aluminum assets to Alcoa has created expectations of supply-side consolidation, but the market has not reacted positively to this news amid the current downtrend. In the short term, the 3,050–3,100 range may be tested, but there is no strong catalyst for a recovery.