Technical Analysis – Alcoa stock price rises somewhat above 2-year low; bearish outlook in long term
January 14, 2019 2:26 pm
The Alcoa stock price dipped to a new two-year low of 24.98 on December 26 and it is currently hovering slightly above this level. The price remains below the medium-term descending trend line, which has been holding since April 19 but stands within 20- and 40-simple moving averages (SMAs) in the daily timeframe.
However, technically, the RSI indicator keeps moving lower below the 50 level, while the %K line of the stochastic oscillator printed a bearish crossover with the %D line in the oversold zone, suggesting some losses in the near term.
In case of an upside jump above the 40-day SMA the price could meet resistance at the 23.6% Fibonacci retracement level of the downleg from 62.35 to 24.98, near 33.75. Slightly above this level, the 34.10 barrier could be the immediate resistance for investors to have in mind, which stands around the falling trend line.
On the other side, if the price slips beneath the 20-day SMA, this could increase chances for more downside pressures towards the two-year low. Moreover, if there is significant violation of this region the market could meet support at the 22.60 barrier, registered on October 2016.
Regarding the long-term picture, the bearish outlook has been building up in recent months as the stock continues to record lower lows.
The Alcoa stock price dipped to a new two-year low of 24.98 on December 26 and it is currently hovering slightly above this level. The price remains below the medium-term descending trend line, which has been holding since April 19 but stands within 20- and 40-simple moving averages (SMAs) in the daily timeframe.
However, technically, the RSI indicator keeps moving lower below the 50 level, while the %K line of the stochastic oscillator printed a bearish crossover with the %D line in the oversold zone, suggesting some losses in the near term.
In case of an upside jump above the 40-day SMA the price could meet resistance at the 23.6% Fibonacci retracement level of the downleg from 62.35 to 24.98, near 33.75. Slightly above this level, the 34.10 barrier could be the immediate resistance for investors to have in mind, which stands around the falling trend line.
On the other side, if the price slips beneath the 20-day SMA, this could increase chances for more downside pressures towards the two-year low. Moreover, if there is significant violation of this region the market could meet support at the 22.60 barrier, registered on October 2016.
Regarding the long-term picture, the bearish outlook has been building up in recent months as the stock continues to record lower lows.
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