Technical Analysis – Alcoa stock steadies near 15-month low; retracement is possible
October 17, 2018 1:26 pm
Alcoa stock tumbled to a new 15-month low in the preceding week, reaching the 35.00 round number. Currently, the price is edging higher and the technical indicators are suggesting a possible upside pullback. The stochastic oscillator created a bullish crossover within the %K line and the %D line in the oversold zone, which is a signal for a bullish retracement. Moreover, the RSI indicator is moving north near the threshold of 30.
Should the market extend gains in the very short-term, resistance could be met at the 39.50 barrier, while the 20-simple moving average (SMA) hovers slightly above it at 39.90. A significant leg above this area could send prices towards the 23.6% Fibonacci retracement level of the downleg from 62.30 to 35.00, around 41.46, which overlaps with the 40-SMA.
On the flip side, if the pair bounces down and dives below the 15-month low (35.00), it could touch the 34.00 psychological level, identified by the top on May 2017.
To sum up, looking at the daily timeframe, Alcoa stock has remained in a bearish tendency since April 19.
Alcoa stock tumbled to a new 15-month low in the preceding week, reaching the 35.00 round number. Currently, the price is edging higher and the technical indicators are suggesting a possible upside pullback. The stochastic oscillator created a bullish crossover within the %K line and the %D line in the oversold zone, which is a signal for a bullish retracement. Moreover, the RSI indicator is moving north near the threshold of 30.
Should the market extend gains in the very short-term, resistance could be met at the 39.50 barrier, while the 20-simple moving average (SMA) hovers slightly above it at 39.90. A significant leg above this area could send prices towards the 23.6% Fibonacci retracement level of the downleg from 62.30 to 35.00, around 41.46, which overlaps with the 40-SMA.
On the flip side, if the pair bounces down and dives below the 15-month low (35.00), it could touch the 34.00 psychological level, identified by the top on May 2017.
To sum up, looking at the daily timeframe, Alcoa stock has remained in a bearish tendency since April 19.
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