Tuesday, January 24, 2017

ALCOA Shows Investor Belief in U.S. Manufacturing




ALCOA (Symbol AA) is on the move.  The manufacture of specialty metal products serves customers word wide and the future appears to have brightened especially for owners of this company as its share price has basically doubled over the last three months.
 

The shares gapped higher today from a closing price of $36.29 yesterday (1/23/17) to an opening price today of $37.18.  It has traded to a daily high of $38.30, not far from the highs of $39.75 in 2014 or the April 2011 high of $41.36.



A look at the daily chart shows strong bullish tendencies in the ‘bullish windows’ of both overnight and from January 11-12.  There is little reason aside from short-term overbought conditions to expect any delay in achieving aforementioned high water marks dating to early 2011.  Beyond those highs, little in the way of technical impediments stands in the way of recovering price action to $80-$100.  



A settlement below $36.29 would be a warning against expecting continued immediate bullish price action and would suggest, at a minimum, a pull back to $32.40. 



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