Thursday, January 6, 2011
Trade Update: AA
I hesitated and was a little late entering Alcoa aluminum AA. My intention was to pick up shares on a break of 14, but the gap above $16 makes for a nice, late entry point. If Alcoa is to continue to the $20 range, then you would not expect it to fall back below $15. Notice that the 20 day moving average also reinforces support at the $15 range.
The buying volume also seems to be picking up on this stock. So, will Alcoa run to $20 a share? I don't know. All I know is we will stay long above $15 or get out below $14. There is no need to worry just trade the breaks.