Near Key Levels: Alcoa
Published on Monday, 31 December 2012 05:56 Written by TradersHuddle Wire
New York, December 31st (TradersHuddle.com) - Alcoa, Inc. (NYSE:AA) closed the the trading session at $8.50, near its 50 day and 200 day moving averages currently set at $8.58 and $8.91 respectively. Alcoa's price action places the stock below these important levels, which makes it difficult to be bought, as it will certainly face resistance as it approaches these important moving averages.
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.
The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $7.98 and resistance at $8.91. Traders should monitor these levels, as they provide insight into the latest price dynamics in Alcoa.
If traders want to establish a position on Alcoa, given the heavy resistance expected near the 50 and 200 day moving averages, a trade might be evident as the stock manages to break these moving averages. However, until the break materializes buying the stock is nothing different than flipping a coin.
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