AA pushes through 100-day moving average
Alcoa Inc (AA) Technical Analysis Report for May 17, 2018
AA ended Thursday at 50.71 gaining $0.52 (1.04%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 50.67, the share confirms its breakout through the prior session's high having traded $0.42 above it intraday.
Thursday's trading range was $1.26 (2.53%), that's below last trading month's daily average range of $1.72. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being way below average.
Notwithstanding a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle.
Prices are trading close to a key support level at 49.85.
Although the stock is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive. Alcoa Inc managed to break above the 100-day moving average at 50.70 today for the first time since April 5th.
Selling could speed up should prices move below the nearby swing low at 49.54 where further sell stops might get activated.
While classical technical analysis indicates a very bullish sentiment for the next trading day, our quantitative statistics show a different picture being bearish.