• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Basic Materials

Alcoa Is Showing a Brighter Polish as It Gets an Upgrade

Here's what the charts are telling us about shares of the aluminum company.
By BRUCE KAMICH
Feb 22, 2023 | 07:49 AM EST

Shares of aluminum producer Alcoa (AA) was raised to a "buy" rating by Citi Wednesday on their more positive view of aluminum. Let's check out the charts and indicators for a technical perspective.

In this daily bar chart of AA, below, I see a basing pattern. The shares made a "left shoulder" in July and a "head" in late September. I can see a complex "right shoulder" in December and February. AA has been trading around and on the 50-day and 200-day moving average lines. The trading volume increased around the head and has been more active in the months since.

The On-Balance-Volume (OBV) line shows strength from September and tells me that buyers of AA have been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is slightly above the zero line.

 
In the weekly Japanese candlestick chart of AA, below, I see a major uptrend followed by a roughly one-third correction. The shares are trading above the 40-week moving average line but its slope is still negative.
 
The weekly OBV line is trying to improve from an October low. The MACD oscillator is close to crossing the zero line and thus close to an outright buy signal.
 
 
In this daily Point and Figure chart of AA, below, I can see that the shares reached a downside price target in the $47 area. A trade at $46.19 could weaken the picture.
 
 
In this weekly Point and Figure chart of AA, below, I can see a price target in the $87 area.
 
 
Bottom-line strategy: AA could continue to trade sideways a bit longer before launching a sustained uptrend. Investors should be patient buyers. Risk to $39.
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of theStreet are prohibited from trading individual securities.

TAGS: Investing | Technical Analysis | Materials | Metals & Mining | Analyst Actions | Basic Materials

More from Basic Materials

Dr. Copper Has a Lot to Say About China's Economic Growth

Maleeha Bengali
Mar 24, 2023 10:00 AM EDT

China's more focused on the domestic consumer which is the fastest way to get GDP numbers higher.

Go to RIO: Time to Rebuy Long Positions in Rio Tinto

Bruce Kamich
Mar 3, 2023 10:31 AM EST

Here's why the February pullback could be the extent of the correction.

Here's How I'm Playing the Copper Rally

Ed Ponsi
Mar 2, 2023 9:00 AM EST

China consumes more copper than any country on earth, and demand for the red metal rises as its economy improves.

Sensient Technologies Could Serve Up a Tasty Rally

Bruce Kamich
Feb 27, 2023 11:15 AM EST

Here's our price target and how we'd trade the stock.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 04:00 PM EDT CHRIS VERSACE

    AAP Podcast: This Solar Company Is a Head-Turner

    Listen to my interview with Brian Roth, CEO of sol...
  • 01:56 PM EDT PETER TCHIR

    Very Cautious

    I am very cautious here. I don't like how the c...
  • 08:58 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    How to Adjust Your Trading Style as Market Conditi...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login