[Chart of the Day] Alcoa, critical levelAlcoa has dropped about 40% from its recent high of 98.00. In the past two weeks, it had dived even further.
Price seems to have created a lower high at 67.00.
It is current at very critical trendline support at 53.00. Do note that 55 is also the previous resistance back in Apr 2018.
Price to most likely consolidates between 53.00 and 67.00 for now. However, if 53.00 is broken, we will be looking at the long-term downtrend price action.
Alcoa is one of the beneficiaries of the Russian/Ukraine conflict along with the fertilizer sectors such as Mosiac. Also, note that Mosiac is facing a similar breakdown to Alcoa.
Our Summary: Current price may be too late for short. If the price rebounds back to the 67.00 level and bearish price action is seen, shorting may be a good position to take. Likewise, if there are bullish candles at 53.00, long positions may be taken as well. The range between 67.00 and 53.00 is big enough to trade. As mid-term trend and near term trend is bearish, we may be leaning more towards the short position.
