What is holding Alcoa INC below $14?
Options? More than 60000 $14 Mar Call contracts are still open.
Aluminum price? It is significantly strong at $0.99/lbs.
Aluminum stock? It is at a 6 month low. 4.51mln tons.
Italy? Market was hoping that Alcoa would shut down the loss making plants in Italy, but they have extended it by another 6 months. Prime Minister of Italy has said that he has a decree for energy issues… Effect is $23mln loss a quarter from their Primary Metals department.
Market Makers? They can only control the price if they have a large inventory. However, the high volume shows that they cannot really control the price for a long time unless they have agreements with large hedge funds for more inventories. Illegal… but its Wall Street.
Investors? They are afraid that Alcoa Inc is going to report another disappointing quarter. Due to whatsoever reason that I cannot think of.
Currency headwinds? US Dollar is strong which is good for Alcoa.
Then what? Beats me. It is the DOG of the DOW.
Chart shows good support at the 13.50 zone. The breakout target is still at $15.3.
The 20sma is going to cross the 50sma.
A breakout is near. This trading range is too tight.
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