Is Alcoa Close to Support?

Published on Thursday, 07 February 2013 05:32 Written by TradersHuddle Wire

New York, February 7th (TradersHuddle.com) - Shares of Alcoa, Inc. (NYSE:AA) are trading very close to calculated support at $8.77 with price action closing at just $8.96 and placing the stock near levels where traders will start paying attention.

Alcoa's stock range is defined by its calculated support defined at $8.77 and by the resistance level at $9.33, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

Traders wanting to establish a position should pay close attention to Alcoa's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $9.33 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

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.