The 200 Day Moving Average is a Great Reference Point for Alcoa
Published on Friday, 04 January 2013 05:36 Written by TradersHuddle Wire
New York, January 4th (TradersHuddle.com) -Alcoa, Inc. (NYSE:AA) closed the trading session at $9.07 near its 200 day moving average set at $8.88. Alcoa's price action is just above this key support level, grabbing traders' attention for a possible trading opportunity.
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, places calculated support at $7.98 and resistance at $8.91. These levels will provide insight for the stock's latest price dynamics.
Traders wanting to establish a position on Alcoa will look for evidence of buying near the 200 day moving average, before opening the position as close as possible to this key technical level. Also, they need to consider the latest range defined by the calculated support and resistance levels for insights on other key levels that might have an effect on future price movements.