This is a simple post, mainly for people holding this stock and want to have an idea of exit levels or what to expect in the coming weekly candlesticks.
-Our approach to any chart is straightforward. It is based on analyzing things that happened in the past in specific areas and then replicating those conditions to the present to understand how the price can evolve.
-In this case, since 2009, we can see a clear support zone at 16.00; every time the price reached that level, we saw huge bullish pressure. When the price went below that level, it didn't take too much time to see it above again. If the 16.00 level is an accumulation zone, where is the distribution zone?
-To answer this, we can use the same approach. 40.00 is a distribution zone since 2009 for Alcoa. Every time the price reached that level, we observed selling pressure. Even when the price went above that level, the price retreat first. As a final target for the movement we observe, we think 40USD is a great area to close setups and see if we have corrective patterns that can provide us information about more bullish pressure coming or see huge sell-offs like the ones that happened in the past.
-Our approach to any chart is straightforward. It is based on analyzing things that happened in the past in specific areas and then replicating those conditions to the present to understand how the price can evolve.
-In this case, since 2009, we can see a clear support zone at 16.00; every time the price reached that level, we saw huge bullish pressure. When the price went below that level, it didn't take too much time to see it above again. If the 16.00 level is an accumulation zone, where is the distribution zone?
-To answer this, we can use the same approach. 40.00 is a distribution zone since 2009 for Alcoa. Every time the price reached that level, we observed selling pressure. Even when the price went above that level, the price retreat first. As a final target for the movement we observe, we think 40USD is a great area to close setups and see if we have corrective patterns that can provide us information about more bullish pressure coming or see huge sell-offs like the ones that happened in the past.
