Potential Downtrend in AlcoaAlcoa has bounced this month, but some traders could think it’s due for a pullback.
The first pattern on today’s chart is the series of lower lows and lower highs since December. The aluminum company has climbed to the top of that falling channel, which may create potential resistance.
Second, prices stalled at the falling 50-day moving average (SMA) in February and seem to be peaking at the same SMA this month.
Speaking of the 50-day SMA, it recently had a “death cross” below the 200-day SMA.
Next, stochastics are dipping from an overbought condition.
Finally, the 52-week low is near $27 and last year’s low is under $25. Combined with the falling channel, those levels may provide space for potential moves to the downside.
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