Is Alcoa Breaking Out?
Published on Tuesday, 08 January 2013 05:36 Written by TradersHuddle Wire
New York, January 8th (TradersHuddle.com) - Shares of Alcoa, Inc. (NYSE:AA) closed the session at $9.10 just above calculated resistance at $8.91. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.
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 stock was trading in a well defined range with support at $7.98 and resistance at $8.91. Given that this range was broken, traders will be closely monitoring Alcoa's price action to gather clues on the future direction.
From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Alcoa is still near the broken resistance level, traders will be focusing on the $8.91 level to see if the stock holds the breakout without rolling over.