ALCOA (AA) showing signs of consolidation at support. Look to enter long on break of upper consolidation line OR short on break of support line. Long position is more likely given recent price action.
LONG play (break of upper consolidation line):
- Enter stock at 36.39
- Look for exit below the 38.95 support line within three to four days.
- place stop loss in the consolidation area so you don't get wrecked by a false breakout.
SHORT play (break of support line):
- Enter stock at 35.96
- Exit stock above the next support level around approximately 32.66.
- Set stop loss at 36.00.
LONG play (break of upper consolidation line):
- Enter stock at 36.39
- Look for exit below the 38.95 support line within three to four days.
- place stop loss in the consolidation area so you don't get wrecked by a false breakout.
SHORT play (break of support line):
- Enter stock at 35.96
- Exit stock above the next support level around approximately 32.66.
- Set stop loss at 36.00.
Comment:
Alcoa broke the upper consolidation line. If making this play hopefully you entered it LONG. So far so good!
Comment:
If you're in this trade I'd recommend an early exit, it's showing some bearish signals.