Alumina shares surge 8% on Alcoa agreeing to takeover the ASX junior player. This is the tip of the iceberg with Aussie M&As picking up

US aluminum producer Alcoa Co $Alico(ALCO.US)$ entered into a binding agreement to takeover its long term JV partnerAlumina $Alumina Ltd(AWC.AU)$, for $2.2 billion to consolidate its ownership of its key upstream assets. Why? Well Alcoa sees long-term demand rising for the metal.

Today's news sent the ASX stock $Alumina Ltd(AWC.AU)$ roaring up 8%. But now it appears to be a tad overbought and hit a Fibonacci level that suggests it may take a breather.