Alcoa Inc was on fire today. The stock rose to a high of $14.80 and finally settled at $14.46.
The breakout that we have been waiting for ages has finally arrived. The enormous volume shows the amount of short covering and new investments.
There are 70mln shares shorted as of 15 March. Today’s volume of 79mln shares suggest that there may be at least 20mln more shares that are shorted. There should be more short covering tomorrow.
Positive unemployment claims report tomorrow will help Alcoa Inc rally to $15. Expect broker upgrades very soon as the high volume usually suggest that some brokers have already bought their shares and they will pump the company by issuing upgrades or reiterations.
This week is option expiration week. The stock should be trading near $15.
No comments:
Post a Comment