Alcoa Inc is very undervalued at this level as seen by the aluminum price itself.
Aluminum price shows the demand of the metal, and it is a better indicator than the aluminum stock prices. When Aluminum prices go above $0.90, it shows that Aluminum demand is indeed increasing by 10% or 12% as predicted by Alcoa’s CEO.
Alcoa will be running the lowest cost Aluminum plant by 2013, this company is well managed by Klaus Kleinfeld who has successfully transformed Siemens into a profitable company during his tenure as its CEO.
Alcoa has been trading within technical levels too.
The dragon white line shows a possible trading range should AA starts an upclimb. Currently, the RSI is on a support level.
Alcoa remains as tradedragon top pick.
Disclosure: Long AA at $10.6
Take Profits at $11.5, 12, 13
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