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Technical Analysis – Alcoa bearish in the medium-term

Alcoa 15/11/18 | EconAlerts


Alcoa stock rises a bit above the 16-month bottom; bearish outlook in the medium-term.

The Alcoa stock price dipped to a new 16-month low of 33.00 on October 26 and it is currently hovering slightly above this level. The price remains below the medium-term descending trend line, which has been holding since April 19 within a narrow range.

Technically, the RSI indicator is pointing slightly to the upside below the 50 level, while the %K line of the stochastic oscillator printed a bullish crossover with the %D line in the oversold zone, suggesting some gains.

In case of an upside jump above the 20-day simple moving average (SMA), the price could meet resistance at the 37.85 barrier, which coincides with the 40-day SMA. More increases could push the stock towards the 23.6% Fibonacci retracement level of the down-leg from 62.30 to 33.00, around 39.85, before being able to re-touch the diagonal line.

However, if there is a significant violation of the 33.00 level it could increase the chances for more downside pressures towards the 29.60 support, taken from the low on June 2017.

Regarding the medium-term picture, the bearish outlook has been building up in recent months as the stock continues to record lower lows.

Alcoa 15/11/18 | 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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