Alcoa: Technical conditions ahead of earnings

theflyonthewall.com

The shares are trading just above the midpoint of the six-month range ahead of earnings, last trading at $9.14. If the news is positive with good guidance, the first big upside objective would be at the September pivot high at $9.93. There is a substantial resistance layer above this area at the $10.20 level and then at the $10.60 area. The latter could be reached on an exceptionally positive report. If the news and outlook are poor, first support would be at $8.87, the 10-day moving average. There is support below this area at the $8.40 area. The lows of the last six months at the $8 area could be reached on an extreme price reaction to any major disappointment. The stock has been in a strong downtrend for over 18 months with basing attempts at the $8 area in the past year. That could be a positive for the shares if news supports an up move from current levels. It would take a breakout above $11 to substantially reverse the longer-term downtrend.

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