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

While the news of AA's acquisition of aluminum assets appears positive, technical indicators paint a weak picture in the short term. The RSI at 34.6 is near oversold territory but has yet to signal a recovery. The MACD line remains below the signal line and in negative territory, indicating continued bearish momentum. The price is trading below both the 20-day and 50-day moving averages and has lost 1.4% in the last 24 hours. Therefore, the short-term downtrend is likely to persist for some time.

The news points to a major consolidation in the aluminum sector, but it may increase short-term oversupply concerns. Technical indicators are already weak: the RSI at 38 is near oversold territory, the MACD is below the signal line, and the price is well below both the 20-day and 50-day moving averages. The 4.4% decline in the last 24 hours indicates continued selling pressure. Therefore, the downtrend is expected to persist in the short term.

GOOGL stock is in a technically strong uptrend, with the RSI at 63—not yet approaching overbought territory—and the MACD trading positively above its signal line. However, since the news headline focuses on the aluminum sector, it is not expected to have a direct impact on GOOGL. In the short term, the current upward momentum may be maintained, but the sectoral impact of the news will remain limited, leading to continued directional uncertainty. Therefore, a neutral view has been adopted.