Current trend

Shares of Alcoa Corp., one of the largest aluminum producers, have been correcting to a medium-term upward trend for a month: during this time, the price reversed at 45.31 (Murrey level [ 1/8]), returned to the main Murrey trading range and is testing 39.06 (Murrey level [5/8]). After consolidation the quotes below the central mark of the trading range 37.50 (Murrey level [4/8]), a decline to 34.38 (Murrey level [2/8]) and 31.25 (Murrey level [0/8]) is expected. In case of a breakout of 40.62 (Murrey level [6/8]), supported by the middle line of Bollinger Bands, the asset will grow to 43.75 (Murrey level [8/8]), which is a less likely scenario.

Technical indicators reflect the formation of a downward trend: Bollinger Bands and Stochastic are directed downwards, and the MACD histogram is stable in the negative zone.

Support and resistance

Resistance levels: 40.62, 43.75.

Support levels: 37.50, 34.38, 31.25.

Trading tips

Short positions may be opened below the 37.50 level, with the targets at 34.38, 31.25 and stop loss 39.90. Implementation period: 5–7 days.

Long positions may be opened above 40.62, with the target at 43.75 and stop loss 38.60.