Alcoa Corporation (AA/NYSE/S&P500)
12 September 2017, 13:05
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 44.55 |
| Take Profit | 46.50, 47.00 |
| Stop Loss | 43.50 |
| Key Levels | 41.40, 42.35, 43.40, 44.50, 45.15 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 43.20 |
| Take Profit | 41.50, 41.00 |
| Stop Loss | 44.40 |
| Key Levels | 41.40, 42.35, 43.40, 44.50, 45.15 |
Industry: Raw materials/Aluminum
Current trend
In August Alcoa stocks grew by 21%, renewing 52-week maximum. The growth driver was the strong quarter report publication against the growth of Aluminum world prices to the level of 2013. Since the beginning of 2017 spot Aluminum points maintained at the level of 1900 USD per ton, and in August the price rapidly grew to 2050 USD per ton. Despite the significant strengthening, strong financial position of the company against the positive dynamics of the market will keep supporting the stocks in the second half of the year.
During the last week Alcoa stocks fell by 3.20% against the growth of the S&P 500 index by 1.14%.
The comparative analysis between the indicators of the company and its competitors suggest that the stocks are underpriced.
Key levels
During last trading sessions the volatility and activity is high. However, there dynamics is controversial. The technical picture is mixed. Key support and resistance levels are 43.40 and 44.50 correspondingly. Indicators don’t give clear signals.
Resistance levels: 44.50, 45.15.
Support levels: 43.40, 42.35, 41.40.
Trading tips
If the price is set above the level of 44.50, the global upward can develop to the levels of 46.50–47.00. Stop loss is 43.50.
If the price breaks the support level of 43.40, find entering points to open short positions with the targets at 41.50–41.00. Stop loss is 44.40.
Use trailing-stop while trading.
Implementation period: 3 days.
Current trend
In August Alcoa stocks grew by 21%, renewing 52-week maximum. The growth driver was the strong quarter report publication against the growth of Aluminum world prices to the level of 2013. Since the beginning of 2017 spot Aluminum points maintained at the level of 1900 USD per ton, and in August the price rapidly grew to 2050 USD per ton. Despite the significant strengthening, strong financial position of the company against the positive dynamics of the market will keep supporting the stocks in the second half of the year.
During the last week Alcoa stocks fell by 3.20% against the growth of the S&P 500 index by 1.14%.
The comparative analysis between the indicators of the company and its competitors suggest that the stocks are underpriced.
Key levels
During last trading sessions the volatility and activity is high. However, there dynamics is controversial. The technical picture is mixed. Key support and resistance levels are 43.40 and 44.50 correspondingly. Indicators don’t give clear signals.
Resistance levels: 44.50, 45.15.
Support levels: 43.40, 42.35, 41.40.
Trading tips
If the price is set above the level of 44.50, the global upward can develop to the levels of 46.50–47.00. Stop loss is 43.50.
If the price breaks the support level of 43.40, find entering points to open short positions with the targets at 41.50–41.00. Stop loss is 44.40.
Use trailing-stop while trading.
Implementation period: 3 days.
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