Is Alcoa Breaking Out?

Published on Thursday, 02 September 2010 04:32 Written by TradersHuddle Staff

New York, September 2nd (TradersHuddle.com) - Shares of Alcoa, Inc. (NYSE:AA) closed the trading session at $10.52 just above calculated resistance at $10.46 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

Alcoa Inc. 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 $9.92 and resistance at $10.46, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Alcoa's stock is still near the broken resistance level, traders will be focusing on $10.46 to see if the stock holds the breakout without rolling over.