A strong move back by high volume in Fridays trading pushing the underlying stock up significantly and over $14 which we would consider an important price point. Consider a diagonal call spread to take advantage of currently high yield on a move over $14.25
The support line turned into a resistance line.
A good short candidate along with Google( ) The rally hit a long term resistance at 17.75 before stalling After hitting that resistance, a head and shoulders formation completed on the weekly chart The price broken out below the neckline of the head and shoulders confirming the pattern The price broken below the 52-week Simple moving average A Minor...
AA reacted as i thought, but baffled by market reaction, searching for reasons why. If SPY has broken the three drivers pattern, the bulls may just have their way. Unless this is a dead cat bounce, or yet another or maybe a last attempt to keep the bull that simply die alive by artificial means, which they are very good at. Baffled is the word.
Then consolidated back half of 2014 and into 2015 before February pullback. Looks solid reversal into earnings, BB's starting to open
4 out of the last 5 earnings, market reaction was down (and one gap down) for an average of 5 days, then a significant bounce back and then some. Its been down to a base, and now up to??? HOWEVER, using RSI as an indicator, we are reaching overbought. Interesting how oil is right at its decision moment, will we breach through the resistance or bounce down, taking...
Alcoa (AA) kicks off the Earnings Season in the S&P500 each quarter. Here is a chart of the first month of "earnings season" which starts when AA announces. Alcoa appears to be negatively correlated to the market, which goes against conventional wisdom. If you look at how Alcoa is positioned between earnings reports, you can see that if Alcoa is down in price...
$AA has been consolidating around 15.60, which makes it a choppy stock with LH-HL. There is no clear trend at this point. However the signs of the long term trend show weakness, both in the trend and momentum. It has tried to break the magic 18.00 value that would make it skyrocket, but after the double top the next attempt barely reached 15.90, Not enough and...
I expect continuation of correction.
Jan13: Head and Shoulders forming. The triple momentum divergence is the signature of the H&S pattern. Even though Earnings was good, the market reaction was not so good. If this is the case then this could fall as low as 12.63 where the 50% retracement of the rally is marked. Keep an eye on the rotation of the fast ribbon (orange) if the price doesn't go back...
The obvious end of the corrective wave.
This setup was one of several setups sent today to the Elite Zone members in the weekly members stock markets analysis. If $AA will continue its climb (after a strong weekly candle from last week) and reach the resistance zone near 17$, it will also complete a bearish Bat pattern. 17$-17.5$ will be an interesting zone to look for intra-day reversals that can...
Alcoa will be first company to report earnings ushering into 2015. Just my little speculations on where the direction of gap will be for better than expected or deteriorating earnings.
Gap Season is starting with AA posting earnings.Since AA has trade bullish the last 4 days a gap down below 14.85 would be a possible Gan n Go trade (enter the trade in the first few minutes of trading because of criteria met ). I would only trade in the direction of the gap , so if I didn't trade right away i would wait for a pullback and trade bearish (if i can...