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Technical Analysis – Alcoa retracement is possible

Alcoa 17/10/2018 | EconAlerts


Alcoa stock steadies near 15-month low; retracement is possible.

Alcoa stock tumbled to a new 15-month low in the preceding week, reaching the 35.00 round number. Currently, the price is edging higher and the technical indicators are suggesting a possible upside pullback. The stochastic oscillator created a bullish crossover within the %K line and the %D line in the oversold zone, which is a signal for a bullish retracement. Moreover, the RSI indicator is moving north near the threshold of 30.

Should the market extend gains in the very short-term, resistance could be met at the 39.50 level, while the 20-simple moving average (SMA) hovers slightly above it at 39.90. A significant leg above this area could send prices towards the 23.6% Fibonacci retracement level of the down-leg from 62.30 to 35.00, around 41.46, which overlaps with the 40-SMA.

On the flip side, if the pair bounces down and dives below the 15-month low (35.00), it could touch the 34.00 psychological level, identified by the top on May 2017.

To sum up, looking at the daily timeframe, Alcoa stock has remained in a bearish tendency since April 19.

Alcoa 17/10/2018 | EconAlerts



 

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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


Source: XM

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