Trading Idea - Alcoa Broke Resistance, What to Expect?

Published on Monday, 06 February 2012 05:56 Written by Christopher Lynn

New York, February 6th (TradersHuddle.com) - Shares of Alcoa, Inc. (NYSE:AA) closed the trading session at $10.76 just above calculated resistance at $10.74 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

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.

Alcoa's stock was trading in a well defined range with support at $10.10 and resistance at $10.74, given that this range was broken traders will be closely monitoring the stock