Current trend

Shares of Alcoa Corp., one of the largest aluminum producers, are moving within a long-term upward trend: at the end of February, the price reversed from the lower limit of the main Murrey trading range of 25.00 (Murrey level [0/8]), crossed it upwards and tested the upper limit of the range of 37.50 (Murrey level [8/8]). The quotes failed to consolidate above it and retreated to 35.94 (Murrey level [7/8]), supported by the middle line of Bollinger Bands. If the reversal mark of 34.38 (Murrey level [6/8]) is broken, the decline will continue to the area of 31.25 (Murrey level [4/8]) and 28.12 (Murrey level [2/8]). However, a breakout of 37.50 and the resumption of positive dynamics to 39.06 (Murrey level [ 1/8]) and 40.62 (Murrey level [ 2/8]) seem more likely.

Technical indicators confirm the continuation of the upward trend in the market: Bollinger Bands and Stochastic are directed upwards, and the MACD histogram is stable in the positive zone.

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, with the targets at 39.06, 40.62, and stop loss 36.30. Implementation time: 5–7 days.

Short positions may be opened below 34.38, with the targets at 31.25, 28.12, and stop loss 35.95.