Alcoa (AA) has been a strong stock on the run for a while. Recently it consolidated for the last 150 days. This morning Alcoa pushed to new highs suggesting the consolidation is over.
The powerful gap out of the consolidation is nice to see on a very liquid stock. This push to new highs after a sideways period looks very healthy for breakout buyers. With the SCTR ranking pinned to the top and the Relative Strength holding nice and high, this has all the characteristics of a strong stock continuing to climb. Support looks to be $17. If it doesn't keep closing above that level, it will be a failed breakout for now.
Have a great weekend.
Good trading,
Greg Schnell, CMT
About the author:
Greg Schnell, CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA).
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