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.
Greg Schnell, CMT