Alcoa Inc could not get pass $14.67 today while the market was rallying. There was severe selling pressure above $14.6 as the strengthening of the USD put on bearish pressure on commodities. That is why most commodities stocks dropped.
There are 2 support. $14.01 and $13.90. I am going to buy Alcoa at $14.01 and watch the market. Alcoa Inc is still undervalued. It truly is the dog of the DOW.
Breakout target is still $15.3. I am very patient towards Alcoa Inc. I have sold some at $14.7 already, and I will be adding back my position again when Alcoa hits $14.01.
Bullish technicals. The 20SMA is crossing over the 50SMA upwards. A bullish flag pattern has been formed. Earnings for Alcoa Inc is coming really soon, April 12.
Goldman Sachs has a tendency to raise earnings estimates of Alcoa Inc especially now that Aluminum price has gone up much more than expected (95cts compared to 80cts) and USD has strengthened (10% greater) which is good for Alcoa as it has about 40% of its operations overseas.
Watch the EURO zone, it will affect Alcoa Inc greatly.
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