Dec 16

ALCOA Price Action Suggests Trade Opportunity

Posted in Stock Market

Sometimes technical analysis and stock price charts help you identify trading opportunities. There is no guarantee. But it can help turn the odds in your favor. We discuss one such opportunity here to serve as an example.
Alcoa (NYSE:AA) and aluminum futures prices have “come into critical price areas.”
November 30, 2012

By Elliott Wave International

The editor of Elliott Wave International’s Metals Specialty Service,
Mike Drakulich, has just recorded a new, free video forecast:

“Aluminum and Alcoa: Exciting Juncture (Nov. 29,
2012.)”

Says Mike (excerpt):

“This is the first video of what is going to be a series of
videos on the industrial metals markets, as they come into critical price areas
that may tell us the big [moves] I’ve been talking about in my daily analysis
are getting underway — or, in fact, are underway.”

ALUMINUM: The video starts off by showing you “the big
picture from 2008-2009 bottom.” Mike Drakulich walks you through the Elliott
wave pattern since then and shows you how, off the recent high, the price has
come down in a familiar ABC pattern. Moreover, the decline has retraced 62% of
the previous rally — a key Elliott wave signature and important Fibonacci
proportion.

Here is an abridged version of the aluminum chart from the new video:

What’s more, the price action in aluminum has just penetrated two key moving
averages, the 50-day and the 200-day.

ALCOA (NYSE:AA): The second half of the video gives you a
detailed look at Alcoa stock. Mike shows you that, going back to the same
2008-2009 period, AA has followed the price of aluminum very closely. You get a
detailed view of Alcoa’s recent drop below a key support price level, plus the
analysis of an important trendline the stock has been “flirting” with — which,
if broken, should “open the gates” to a rare opportunity.

Mike Drakulich ends the video by saying:

“Bottom line, we have some really nice action in aluminum and
Alcoa, and this is being seen across the board in many of the industrial
commodities.”

Visit
Elliott Wave International to watch the full, FREE video forecast on these two
emerging trading opportunities.

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