| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL STOP |
| Entry Point | 32.75 |
| Take Profit | 29.50 |
| Stop Loss | 34.00 |
| Key Levels | 29.50, 32.80, 36.70, 40.50 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 36.75 |
| Take Profit | 40.50 |
| Stop Loss | 35.50 |
| Key Levels | 29.50, 32.80, 36.70, 40.50 |
Current trend
Shares of Alcoa Corp., one of the world’s largest aluminum producers, are correcting at 34.00.
Published yesterday, Q2 financial report exceeded the restrained analysts’ expectations due to the growth in sales of products in the segments of alumina and aluminum by 2.0% and 5.0%, respectively. However, the statistics was worse than the previous period: revenue was 2.68B dollars, more than 2.67B dollars, and the loss per share reached 0.35 dollars, better than the estimates of 0.52 dollars but more than the previous loss of 0.23 dollars.
According to analysts, the probability of positive dynamics of the issuer’s securities in the next twelve months is extremely low: thus, JPMorgan Chase & Co. lowered target price for Alcoa Corp. shares from $38.0 dollars to $36.0 dollars against the expected reduction in the global aluminum price. Independent company Wolfe Research LLC also corrected the same figure, which now stands at $25.0 dollars, which is almost 27.0% below the current asset quotes. According to the researchers, the increase in aluminum production in China and high mining costs in Australia could weaken global aluminum prices, negatively affecting the company’s performance in the third and fourth quarters. We remind you that earlier, Morgan Stanley lowered the rating of Alcoa Corp.
Support and resistance
On the daily chart, the trading instrument is moving within the global downward corridor 45.00–27.00, dropping to the year’s low of 32.00.
Technical indicators maintain an unstable sell signal: the EMA fluctuation range on the Alligator indicator remains narrow, while the AO histogram forms new downward bars, approaching the transition level.
Resistance levels: 36.70, 40.50.
Support levels: 32.80, 29.50.
Trading tips
Short positions may be opened after the price drops and consolidates below 32.80 with the target at 29.50. Stop loss — 34.00. Implementation period: 7 days or more.
Long positions may be opened after the price rises and consolidates above 36.70 with the target at 40.50. Stop loss – 35.50.
คำชี้แจง (Disclaimer) : เนื้อหาข้างต้นเป็นเพียงมุมมองของผู้เขียนแต่เพียงผู้เดียว และไม่ได้แสดงหรือสะท้อนถึงจุดยืนอย่างเป็นทางการของ Followme แต่อย่างใด Followme ไม่รับผิดชอบต่อความถูกต้อง ความครบถ้วน หรือความน่าเชื่อถือของข้อมูลที่ปรากฏ และจะไม่รับผิดชอบต่อการดำเนินการใด ๆ ที่เกิดขึ้นจากเนื้อหานั้น เว้นแต่จะมีการระบุไว้เป็นลายลักษณ์อักษรอย่างชัดเจน
