Alcoa moved below 9 in mid 2012 and proceeded to form a long base over the last 15 months. This base gave way to a reversal with a surge above 9 and a 52-week high (intraday). Also notice that the surge started with strong volume. This week's volume is incomplete, but will be above average because the stock traded over 75 million shares on Tuesday.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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