Alcoa has been falling since Thanksgiving, but some traders may think the aluminum stock has bottomed.
The first pattern on today’s chart is the April 9 high of $26.67. AA was trapped under that level for a month but yesterday it closed above it for the first time. Is the old resistance broken?
Second is the series of higher lows during the period of bottoming. Those may suggest buyers outnumber sellers.
Third, the 8-day exponential moving average (EMA) is climbing toward the 21-day EMA. A crossover could indicate the short-term trend is getting bullish. MACD is also rising.
Finally, AA is about 20 percent below its 200-day simple moving average. That may provide space for a rebound -- especially with lower tariffs easing worries about the economy.
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The first pattern on today’s chart is the April 9 high of $26.67. AA was trapped under that level for a month but yesterday it closed above it for the first time. Is the old resistance broken?
Second is the series of higher lows during the period of bottoming. Those may suggest buyers outnumber sellers.
Third, the 8-day exponential moving average (EMA) is climbing toward the 21-day EMA. A crossover could indicate the short-term trend is getting bullish. MACD is also rising.
Finally, AA is about 20 percent below its 200-day simple moving average. That may provide space for a rebound -- especially with lower tariffs easing worries about the economy.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.