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Posts Tagged ‘AA

Twitter Ticker ($AA)

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AA090708With Alcoa’s numbers out, StockTwits is tracking AA as it trades higher on a “smaller than expected loss.” Though AA technically remains in an uptrend, the 20sma is not rising, and it trades below a declining upper Bollinger. Should 8.33 fail to hold, things will get nasty for the embattled aluminum producer.

According to this Reuters report, Alcoa is looking for American car manufacturers to replenish depleted inventories, government stimulated consumption, and production curtailments to stay competitive. This hardly sounds like a growth plan, and the price of aluminum doesn’t look to hot.

ALUM090708Aluminum has recovered from the March lows, but remains in the confines of a downtrend below a declining upper Bollinger. With the recent triple bottom breakdown in the price of Al, Alcoa’s margins may be further squeezed as global demand fails to materialize.

The broad market continues to look weak, so stay defensive and manage your long positions with an awareness of the downside risks. If Alcoa manages to rally tomorrow, I may short it if the market looks feeble, otherwise I’m leaving it alone.


Written by chucklesamadeus

July 8, 2009 at 7:56 pm

Twitter Ticker ($AA)

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Alcoa reported its first back-to-back loss in 15 years, but the stock rose on large volume.

aa090408-copyBig accumulation from $5-$8 may end the free fall.

AA remains a trade, not an investment. That said, there are some good developments for investors.

Although the primary trend is down, it grows increasingly neutral, and the Feb-Mar shakeout is a distant memory. It is too early to declare an end to the selling, but the massive buy volume in this recent rally is encouraging.

A break of the upper Bollinger Band at $9.35 accompanied by sustained trading above the 5 period moving average at $7.90 would give credibility to a bullish thesis.

Buyers beware if AA trades below $7.20, and take profits near $11.50. Shorts can make another run to $5, but a trade above $8.65 warrants covering.

Written by chucklesamadeus

April 8, 2009 at 1:49 pm

Posted in AA, Twitter Ticker

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