Alcoa Inc Signals A 30% Move Coming!

Alcoa Inc (NYSE:AA) has been chopping sideways over the last month. This is coming after a sharp two week fall. Technical analysis tells us that this chart pattern is a bear flag formation. Bear flags on the charts are price consolidation that occur before the resumption of the previous move.

 

Since the previous move was sharp downside, this indicates that further downside is on the horizon. The downside target on this trade would be $6.75, marking a fall of over 30% from current levels. Note the chart below…

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: