Alcoa Close to 50 Day Moving Average

Published on Tuesday, 07 September 2010 04:48 Written by Danny Miller

New York, September 7th (TradersHuddle.com) - Shares of Alcoa, Inc. (NYSE:AA) closed the trading day at $10.88 close to its 50 day moving average currently set at $10.78. Alcoa's price action is just above this important support level translating into a trading opportunity.

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.

Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $9.92 and calculated resistance at $10.46. These levels should also be evaluated by traders when planning their trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on Alcoa will be looking at the price action for evidence of buying near the 50 day moving average, and opening a position as close as possible to this important level. Also traders will be looking at the latest price action, via the stocks current range previously defined for insights of other key levels that might affect their upside or downside.