Alcoa near Support

Published on Thursday, 02 February 2012 08:04 Written by Christopher Lynn

New York, February 2nd (TradersHuddle.com) - Shares of Alcoa, Inc. (NYSE:AA) ended close to calculated support at $10.10 with current price action placing the stock near levels that will raise attention of traders looking for an entry point.

Alcoa's current stock range is defined by current calculated support defined at $10.10 and by the resistance level at $10.74, which could be used as a reference by traders planning their trades. The area defined as calculated support, is where buying might materialize, which could provide a lift to shares of Alcoa, Inc.. However, this area if breached will signal participants that the stock failed to entice buyers to step in and support the stock.

Traders wanting to establish a position should pay close attention to Alcoa's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $10.74 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.

Shares of Alcoa, Inc. closed at $10.20 in the previous trading session.

Alcoa Inc. (NYSE:AA) produces primary aluminum, fabricated aluminum, and alumina, and participates in mining, refining, smelting, fabricating, and recycling. Its products are used in aircraft, automobiles, commercial transportation, building and construction, oil and gas, defense, and other industrial applications. Alcoa was founded in 1888 and serves customers worldwide.