Alcoa: Not Ready to Lead the Dow
Alcoa (AA) has been a top Dow performer for the last few weeks. The aluminum giant bottomed out near 5 in March and entered a steady recovery that reached the 200-day EMA in August. Price action has been choppy since that time, with a series of highs above the average, undermined by a steep October selloff. The current uptick has returned the stock to the October high near 15.
The weekly chart shows two main obstacles. First, the current positioning isn’t favorable for a quick breakout so another downswing appears likely. Second, the April into October rally printed higher highs that now mark resistance around 17. So, the best scenario for the bulls will be a shallow pullback that sets up a better breakout pattern, with aggressive profits taken at the rising highs trendline.
Leave a Reply
You must be logged in to post a comment.