Alcoa Corporation (AA) has been having a set of eventful trading activity and it is clear from an examination of the charts that traders are now fully aware of the company’s key metrics. A deeper exploration of the setup is sure to yield a clearer picture of why AA is trending in the way it is presently – let’s move right into that. As we move into the full deep dive of the technical chart, it’s quite important to point out that few traders succeed if they ignore the messages presented under technical analysis.
AA’s present state of movement can best be assessed by looking at its current day’s high $31.45 and the corresponding low of $30.61. It is important to note that the current day’s high figures poorly when compared to the trailing 52-week high of $39.78 achieved by AA on 02/13/17. The corresponding low also paints a picture and suggests that the low is nothing but a 53.70% since 10/18/16. From a trading perspective, this is a good sign for anyone keen on making big gains from the stock’s prevailing upside potential. Of course the current trading setup is getting a lot of attention from analysts. Most have laid bare their sentiments on the stock as you can see from the following: The target price for AA is $42.73; this target is below the most recent high recorded for the stock. These data points are key areas savvy traders will be monitoring.
No monitoring can ever be called comprehensive, thorough, or water-tight unless the outlined technicals get support. This support can be pulled from the more salient technical data points and should be used whenever possible. Technical indicators don’t get more indicative than the measures called Relative strength indicator (RSI) and Stochastic. The numbers for AA, based on these two very powerful indicators, are indeed very telling. Let’s see what they say in greater detail. The current reading for AA, where the 14-day RSI is concerned, is 37.18%. This means, based on the reading, that AA is neutral, suggesting that the stock is relatively stable in terms of upward or upward price movement. The stochastic reading is also gives consistent interpretations. In relation to AA, there is a stochastic reading of 21.54%. This means, based on the stochastic data, that AA is oversold at current levels.
AA composite picture doesn’t end with either the RSI or the Stochastic, however; there are also compelling readings being presented by the stock’s 50 and 200 SMAs. AA, on account of current trends displayed on its moving averages, appear in all ways and from all angle of analysis, to be bullish. Traders and investors have naturally seized upon this current positioning of the stock and general sentiment appears to be positive.
There are a few technical data points that can add richly to the picture painted above. Once these are baked into the analysis, all becomes clearer. AA’s -0.89 has now manifested a clearer vein of trading and investing sentiment. When analyzed closely, this sentiment appears to be largely negative assessed over the trailing 30 days of data. The consequences of this performance have been stark; the stock is now trading on higher volatility levels when compared to matched against companies operating in the same sector. Historical volatility is also showing why AA is on the radar of a lot of traders. This reading for historical volatility is 26.12%. AA is also pointing to strong readings on the Average True Range – a very important technical touch point that shouldn’t be ignored. That ATR reading is 3.27. AA, when analyzed from the vantage points of maximum clarity, has made it obvious which direction the wind is blowing. No savvy trader can say they’ve missed the stock’s positioning premise.