Current trend

Shares of Alcoa Corp., one of the largest aluminum producers, have been growing for the second month, correcting to a long-term downward trend: the price reversed at the lower limit of the Murrey trading range of 25.00 (Murrey level [0/8]), crossed it upwards and is now testing 37.50 (Murrey level [8/8]), the breakdown of which will allow the asset to reach the pivot zone of 39.06 (Murrey level [ 1/8]) and 40.62 (Murrey level [ 2/8]). In case of consolidation below the “bearish” key level of 34.38 (Murrey level [6/8]), negative dynamics are expected to develop to 31.25 (Murrey level [4/8]) and 28.12 (Murrey level [2/8]).

Technical indicators confirm the upward trend: Bollinger bands reverse upwards, and the MACD histogram grows in the positive zone. A downward reversal of Stochastic in the overbought zone does not exclude a limited corrective decline.

Support and resistance

Resistance levels: 37.50, 39.06, 40.62.

Support levels: 34.38, 31.25, 28.12.

Trading tips

Long positions may be opened above 37.50 or after a reversal at 34.38, with the targets at 39.06, 40.62, and stop losses 36.25 and 32.80, respectively. Implementation time: 5–7 days.